Madam, – The Minister for Finance intends to make further cuts to public spending (€2 billion in public spending and tax, Front page, February 27th). The Community Platform, a network of 28 national organisations, strongly rejects any further cuts to essential public services, childcare and social welfare.
The State loses hundreds of millions of euro every year in what are known as “tax expenditures” or “taxes forgone”. These include the wide range of tax reliefs and shelters available, from which the wealthiest people in Ireland benefit most.
The Commission on Taxation recommended that 29 of those breaks should be discontinued and 31 of them should be modified. Estimates of the extent of the savings from phasing out the reliefs range from €320 million to €8 billion.
According to figures from the Department of Finance, increasing the marginal tax rate to 65 per cent for people earning in excess of €150,000 would raise €1 billion a year. Abolishing the existing ceiling on PRSI for those who earn in excess of €52,000 would yield approximately €220 million a year.
The route to a more balanced and fair society is not about squeezing more out of those already bearing the biggest burden, but increasing revenue through tax reform, targeting those who continue to enjoy excessive salaries, privileges, expenses, bonuses, tax breaks and tax shelters. – Yours, etc,