Taoiseach commits to cutting income tax rates

Taoiseach Enda Kenny has said he is committed to cutting the top tax rate of 52 per cent in this year’s budget and subsequent budgets.

Mr Kenny said that while the Government does not "have the liberty to do all what we might like to do", it will "start the process" of cutting the top rate of tax when Minister for Finance Michael Noonan delivers Budget 2015 next month.

"We are not going to lose the momentum or the progress that has been achieved economically by the sacrifices of the people. What we want to do with this budget is to strengthen the economic progress we have made and to make it more sustainable," he said during a visit to the Dairygold facility in Mitchelstown in Co Cork.

“We must invest in the future and continue to be competitive and attractive as a location for investment with a real opportunity to create further jobs.”

Minister for Jobs, Enterprise and Innovation Richard Bruton echoed Mr Kenny's comments on taxation, saying the tax regime has an impact when Ireland is competing for projects.

“When we go competing for new projects – employers and board rooms look at the so called tax wedge. We have a high rate at 52 per cent and it is hit by people at very modest incomes. It’s an obstacle from an employment point of view and I believe the Taoiseach has made that point.”

However, Mr Bruton said that people can draw confidence from Ireland’s latest economic returns, which he said underline a turnabout in the country’s fortunes.

“The numbers are extremely encouraging- if you go beneath stats, you will seen exports growing by 13 per cent, you see investment growing by 18 per cent, you see building and construction showing its first signs of growth,” he said.

“What you are seeing now with these figures is a recovery that started with exports is now embedding in the wider economy and I think that is something we will be determined to build on in this budget.

“I think Michael Noonan and the Taoiseach have made it clear that the plan is working but we must stick to the prudent approach that is at the heart of this success,” said Mr Bruton.