The current tax-take is not sufficient to provide enough money to tackle the national infrastructure and social deficits, according to an analysis by the Conference of Religious of Ireland (CORI) released yesterday.
The tax-take here is the lowest in the EU, either as a percentage of GNP or of GDP. And the Government's insistence of keeping it low "raises serious questions" about its willingness to tackle these problems, CORI says.
Total receipts from tax and social insurance are at least 7 per cent below the EU average, when measured in terms of GNP. The UK is closer to the norm, with the take there just 3.8 per cent below the EU average.
Income tax and employees' social insurance levels are close to the EU average, says CORI, but "taxes paid by the better-off are far below the EU average".
While Ireland's per capita income is far above the EU average, its infrastructure and social provision are a long way below the average, according to the CORI analysis.
If Ireland is to have EU levels of infrastructure and social provision, it must move closer to the EU tax-take, it adds. Those wanting the tax-take to remain below the average have not explained how this can happen while making such improvements.