The Irish Congress of Trade Unions acknowledges and supports the core finding of the Commission on Tax and Welfare that taxes and social insurance contributions will need to rise materially to meet long-term budgetary challenges.
General Secretary Patricia King said: ‘We need to be honest with people. Dealing with the ongoing crises in areas like housing and childcare, properly funding education, healthcare, and public transport, and paying for the investments needed to make the zero-carbon transition will cost significant billions. The fiscal cost of an ageing population will also have to be funded. Paying for all of this means more and higher taxes.
‘But it is important that those with the broadest shoulders bear the brunt of the cost.
‘Congress is pleased the Commission has heard and agreed with us on this, and to see many of our longstanding policy positions included in the Commission’s recommendations.’
‘The Commission has identified a range of revenue-generating measures targeting wealth, capital income, self-employed income, and unfair tax breaks. Capital income and wealth have for too long been grossly undertaxed compared to the income hard-earned by workers.’
She added: ‘Congress also welcomes the report’s strong emphasis on income adequacy. In particular, a regular benchmarking exercise is undertaken to ensure the adequacy of all working age supports, and other recommendations related to pay-related working age contributory benefits and enhanced child income supports. All workers and households must be insulated from poverty, not only during this cost of living crisis but at all times. ‘However, Congress is gravely concerned that a range of unfair tax supports that favour high-income individuals and businesses are recommended for retention. This is contrary to basic tax justice principles. We are also concerned with the inadequacy of employer contributions to the social insurance fund.
‘Notwithstanding, our overall view is that this report is an important starting point for an informed discussion about how we can generate sufficient and sustainable revenue to meet the long-term expectations and needs of workers in terms of free at the point of use universal public services and income supports that secure living standards during breaks in employment.
‘There can be no going back to the low tax and low spend model that has caused so much of our current problems.’
