Should the Government cut income tax? Readers’ Opinion Poll and Comment Box

Tánaiste indicates there is room for income tax cuts as economy recovers

Tánaiste Joan Burton has indicated that the economic recovery could allow for income tax cuts, along with long-term investment in education and roads, Arthur Beesley reports on Wednesday.

"Without a doubt there is a surge in consumer confidence," she told The Irish Times. "For everybody who has been at work – taken tax hikes, taken pay cuts – it's possible now to see a route to restoration."

Citing agreements with Taoiseach Enda Kenny to reform the universal social charge, raise the entry point for the higher income tax rate and look at tax rates, she said the Government was on course to deliver further concessions in the next budget.

Meanwhile, Enda Kenny cautioned on Wednesday that Irish people should not "lose the run of [themselves]" on pay levels because the economy is in recovery. He added that the new National Economic Dialogue to consider pay and tax priorities would be a better system than the old social partnership model, reports Mary Minihan.

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