`Deafening silence' on corporation tax

There had been a "deafening silence" from the ICTU executive on the reduction of corporation tax to 12

There had been a "deafening silence" from the ICTU executive on the reduction of corporation tax to 12.5 per cent, said ATGWU leader Mr Mick O'Reilly.

He had no problem with trade unions seeking to influence what happened at Cabinet through social partnership but they should not allow a "Hood Robin" culture to develop where the poor were robbed to pay the rich.

"There are certain rich, dysfunctional families in this country who, if they want a seat at the Cabinet table, can simply buy one."

Ireland was now a tax haven for European business. The tax rate should be at least 20 per cent.

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The IMPACT national secretary, Mr Paddy Keating, said PAYE allowances should be increased as "workers are the only people agreeing to pay restraint in national agreements. There is no limit on corporate profits or the earnings of the self-employed. Why should those who are not trading pay rises for tax reform still get the benefit of tax cuts?"

He called for the standard rate tax band to be "significantly widened so that those on average earnings or less only paid tax at the 24 per cent rate". The Government had promised to bring 80 per cent of taxpayers on to the 24 per cent rate, yet more than 40 per cent were still paying at the higher rate.