There was an article in the Times this weekend espousing the value of a single 12% income tax rate across the board. The author argued that it would do for our knowledge economy what our corporate tax rates has done for our multinational industry. He argued that we would attract the best and brightest from all over Europe to come and live here, just as we have attracted the top multinationals.
I find the argument compelling. Though I will admit that I am in favour of a single low income tax rate - and have argued for 20% many times. This man's suggestion is even more radical. But we need radical moves in Ireland at this stage, unless we wish to continue in failure.
He argued that spending would immediately increase as people would have more money in their pockets, and that house prices would rise, thus saving our banks.
He also argued that a 12% rate with no exemptions would end up bringing in around the same amount of income tax as we bring in at present.
Sorry that I don't have a link to the article - maybe someone could post one if they can find it? The author was a lecturer in the Smurfit business school as far as I recall.
If we are serious about becoming a knowledge economy, then this is the way to go. We have already seen that it works with our corporate tax rate, why not extend it to our best asset - our people.
I find the argument compelling. Though I will admit that I am in favour of a single low income tax rate - and have argued for 20% many times. This man's suggestion is even more radical. But we need radical moves in Ireland at this stage, unless we wish to continue in failure.
He argued that spending would immediately increase as people would have more money in their pockets, and that house prices would rise, thus saving our banks.
He also argued that a 12% rate with no exemptions would end up bringing in around the same amount of income tax as we bring in at present.
Sorry that I don't have a link to the article - maybe someone could post one if they can find it? The author was a lecturer in the Smurfit business school as far as I recall.
If we are serious about becoming a knowledge economy, then this is the way to go. We have already seen that it works with our corporate tax rate, why not extend it to our best asset - our people.