Sir, – We should be wary about placing so much emphasis on the statistics of inequality that we blind ourself to the real-world consequences.
For example a high-paid executive, say in aircraft leasing, who tires of Ireland’s weather and high tax rates and transfers to Switzerland results in an actual decrease in the gross inequality which TASC abhors despite the loss of income tax available for redistribution. Conversely a person moving from unemployment (and receipt of various transfers) to the workforce results in a significant positive change in pre-redistribution income and therefore gross inequality despite a sometimes negligible change in net income to the individual.
We should not allow welfare traps to consign productive individuals to a life of morale-sapping dependency, just as we should not scare away those whose labour can help provide a more compassionate system. I see nothing in TASC's proposals that demonstrates awareness of the role of incentives in the labour market. Nor do I see any cartel busting propositions that could tackle the obscene salaries of those at the top of the accounting, legal or medical professions – sectors immune to international competition which have been highlighted by the IMF and others as a drag on our competitiveness. – Yours, etc WARREN GALLAGHER Trinity Square, Dublin 2.