Your tax bill is set to rise: what is likely to change?
Smart Money: The new commission on tax and welfare will consider sweeping changes
The new commission on tax and welfare will recommend changes in the taxes we pay and the entitlements we receive. Photograph: iStock
Did you notice? Minister for Finance Paschal Donohoe is establishing a new commission on tax and welfare, chaired by LSE academic Professor Niamh Moloney. It is due to report by summer 2022 and has a far-reaching remit to recommend changes in the taxes we pay and the entitlements we receive. Its terms of reference are far-reaching – the signals are that post-pandemic big changes may be on the way. They won’t come in next year’s budget, but after that everything will be on the table. So what might this mean?
1. PRSI and a new social contract
There is one area where changes look to be a nailed-on certainty. Social entitlements in areas such as sick pay, paternity leave and supports for people out of work are going to increase. And higher PRSI is going to be the key way of paying for it. This was signalled in the programme for government and the emergency supports during the pandemic – while many will be unwound in their current form – have added fuel to the debate.