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IBEC Director General Danny McCoy Sasko Lazarov/Photocall Ireland

Roll back on 'penal austerity taxes'-Ibec

The Taoiseach reaffirmed his commitment to tax cuts – but only if the economy is performing well.

The chief executive of Ibec has called on the government to cancel tax increases introduced during the recent “austerity phase”.

Speaking at Ibec’s Retail Ireland conference in Dublin this morning, McCoy said:

“Ireland needs to roll back from the penal taxes implemented during the austerity phase.”

He said that those who believed an “austerity narrative” were wrong, and that a €2 billion adjustment in the budget for next year could be achieved through measures besides tax hikes or expenditure cuts.

“(They) fail to appreciate there is a third way. The third way is through economic growth and through buoyancy.”

The idea of austerity activism…is an idea that is over, and has been over for at least a year and a half.

He said that the tax burden must be reduced in order to encourage economic growth.

“We need to reduce the tax burden, and particularly the income tax burden.”

McCoy argued that if inflation picks up, the economy will grow four per cent in value terms this year, the revenues from which would be enough to fund the €2 billion adjustment in budget 2015.

Taoiseach ‘remains committed’ to tax cut

McCoy’s bullish comments came after the Taoiseach re-affirmed the Government’s commitment to easing the tax burden in this Autumn’s budget.

However, he retained the proviso that the economy had to continue to grow before any tax cuts are considered.

Minister Noonan has already spoken about giving flexibility to lessen the tax burden on working people. This is a priority for Government…and will be delivered on if the flexibility is available to us with the projected growth in the economy.

The Taoiseach also promised to establish a forum for consultation with retailers, insisting that it would not become a “talking shop”.

He told the audience: “If the ideas from your forum are practical, effective or workable, they will be implemented.”

Revenue took in €3 billion more tax last year and seized 700k litres of laundered fuel>

IBEC aren’t a political party, but if they were, this is what their local election manifesto would say>

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18 Comments
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    Mute Kerry Blake
    Favourite Kerry Blake
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    May 6th 2014, 1:16 PM

    Enda confirms his commitment to reducing tax on the same day his government slaps on an extra €240 on every household in Ireland? Does he think we are all as stupid as he is?

    62
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    Mute Pete Foley
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    May 6th 2014, 3:33 PM

    U need to earn twice that to pay it

    11
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    Mute Ryan Carroll
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    May 6th 2014, 4:50 PM

    He thinks youre supid indeed. Reduce progressive taxation but hike regressive flat taxes…you end up with less money even post tax cuts than if the rates went up but u dont see it on your pay slip. Theyre hoping you wont go thru your budget and spot the trick…cos a lot of voters dont even have a household budget and they know the tricks usually work

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    Mute Ryan Carroll
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    May 6th 2014, 4:50 PM

    He thinks youre supid indeed. Reduce progressive taxation but hike regressive flat taxes…you end up with less money even post tax cuts than if the rates went up but u dont see it on your pay slip. Theyre hoping you wont go thru your budget and spot the trick…cos a lot of voters dont even have a household budget and they know the tricks usually work

    4
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    Mute Scrap Croke Park1
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    May 6th 2014, 12:35 PM

    Raising the point at which the higher rate of tax kicks in is a no brainer. People who only work part time or choose not to do available overtime because of the higher tax would choose to work more hours resulting in more tax revenue and more money in the economy.

    56
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    Mute Kris O Kay Kay
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    May 6th 2014, 1:17 PM

    Reduce Welfare rates… abolish the USC and increase the amount you hit the higher rate of tax by at least €25k…incentivise and reward work for a change

    56
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    Mute John Burke
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    May 6th 2014, 3:01 PM

    Stop robbing SF policies yi scoundrel kkk ;)

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    Mute Kris O Kay Kay
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    May 6th 2014, 3:35 PM

    Robbing SF policies? SF would tax us to death while increasing welfare payments….no thanks. I for one am sick of constantly having to support an ever growing welfare class by paying 53% of my salary in taxes and levies…

    23
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    Mute Ryan Carroll
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    May 6th 2014, 4:38 PM

    Calm down there kris youre not the only one who pays taxes and most of us who do dont mind helping people whove hit bad times. When i was paying more than half my income in taxes last year i told myself i might need to b on the receiving end one day n others will pay for me..and thats whats happened. We all contribute to a common pot we all rely on to a greater or lesser degree sometime in life. Most of the welfare budget goes on pensions and only a small fraction of what we pay goes towards jobseekers it funds plenty of other things like education for young people and healthcare services those two alone take up way more tax than jobseekers.
    We dont have an incentive problem we have a growth problem mass lazyness didnt break out in 2008.
    If they were really interested in tax relief theyd not b introducing new regressive flat taxes on water and property. The whole tax system should b replacrd with a totally new model w/ 3 brackets and property and rates replaced as well.

    8
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    Mute Ryan Carroll
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    May 6th 2014, 4:38 PM

    Calm down there kris youre not the only one who pays taxes and most of us who do dont mind helping people whove hit bad times. When i was paying more than half my income in taxes last year i told myself i might need to b on the receiving end one day n others will pay for me..and thats whats happened. We all contribute to a common pot we all rely on to a greater or lesser degree sometime in life. Most of the welfare budget goes on pensions and only a small fraction of what we pay goes towards jobseekers it funds plenty of other things like education for young people and healthcare services those two alone take up way more tax than jobseekers.
    We dont have an incentive problem we have a growth problem mass lazyness didnt break out in 2008.
    If they were really interested in tax relief theyd not b introducing new regressive flat taxes on water and property. The whole tax system should b replacrd with a totally new model w/ 3 brackets and property and rates replaced as well.

    4
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    Mute seamus mcdermott
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    May 6th 2014, 7:24 PM

    KKK would pave the roads with the skulls of the poor.

    5
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    Mute Kris O Kay Kay
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    May 6th 2014, 7:29 PM

    Define “poor” Seamus?

    5
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    Mute Dave O'Shaughnessy
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    May 6th 2014, 11:13 PM

    Riposte of the Day Sir! ;-)

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    Mute Joseph O'Regan
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    May 6th 2014, 12:56 PM

    The Bankers need money, Dennis O’ Brian needs your money, the political parasites need your money and you get nothing in return in good old Ireland.

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    Mute John Hartigan
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    May 6th 2014, 2:24 PM

    Election spew

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    Mute Paul Roche
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    May 6th 2014, 2:30 PM

    Honahan understands the position our banks are in. We cannot cut tax and service the debt taken on as a result of Prom Night.
    There’s no way out by any means other than a strategic default.

    9
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    Mute Steven Raynor
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    May 6th 2014, 4:25 PM

    If elected, SF would ….

    Lower income tax and VAT

    Raise Social Welfare rates

    Raise wages

    Upgrade the tree travel pass for junkies so that it also covers taxi’s

    Abolish water charges and property tax

    Increase student grants

    Increase government spending

    Decrease the national debt

    Find a cure for cancer

    Cut crime

    Burn the bondholders

    ————SF, a great bunch of lads ————-

    5
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    Mute George Tómas Bradán
    Favourite George Tómas Bradán
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    May 6th 2014, 10:07 PM

    he says maybe no tax cuts but he will screw us anyway

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