THE GOVERNMENT has been urged to reform the tax system and set out a clear plan on how to improve the level of public services and infrastructure over the coming years.
Cori Justice, one of the social partners which helped negotiate the Towards 2016 national agreement, says the country faces a crucial choice of whether to reduce the level of services and infrastructure, or to increase the tax-take to pay for these.
"It is crucial that a clear vision of Ireland's future be identified and a credible pathway set out to reach that destination," said Fr Seán Healy, director of Cori Justice.
He said the Government should seek agreement on what level of services and infrastructure Ireland wishes to have in the medium-term, and reform the tax system so those who have more, pay more, while those who have less, pay less.
Cori Justice's policy paper says services in areas such as health, education and welfare are not at the level expected of a country with Ireland's wealth. Likewise, Ireland's infrastructure in areas such as public transport and broadband is very inadequate.
On the other hand, it says Government plans to borrow more than €13 billion next year - of which almost €5 billion will go towards meeting day-to-day expenses - is a situation that cannot continue for long.
The policy paper says a certain amount of improvement in Ireland's fiscal situation could be achieved by getting better value for money in both services and infrastructure, but this would not be sufficient to bring services up to the standards demanded.
Cori proposes increasing corporation tax to 17.5 per cent; introducing land rent taxes; higher taxes for second homes; new environmental taxes; applying the standard rate to all discretionary tax reliefs, making them available at the 20 per cent rate only; and increasing tax credits.
