The Small Firms' Association yesterday launched it's pre-Budget 2017 submission which recommend changes in the tax regime and a strategic approach to investment with the hope that this will support entrepreneurship, value small businesses and reward risk takers.
Launching the submission, SFA Chairman AJ Noonan said; “Competitiveness must be at the heart of Budget 2017. In an environment where many factors are outside of our domestic control, the Government must relentlessly pursue improvements in the competitiveness of those areas it can influence. This is especially critical in light of aggressive competition from the UK in the aftermath of the Brexit vote.”
In the submission, the SFA says that a 10% entrepreneurial rate for capital gains tax would encourage business owners who sell their business to invest in another company. It also recommend that the government abolishes the 3% USC surcharge for self-employed workers; increasing the EITC to the same level as the PAYE tax credit; introducing a voluntary PRSI system for the self-employed; increasing the entry point to the marginal rate of tax and decreasing the rate by 1%; ensure that the National Minimum Wage increase does not penalise employers; introduce a scheme for employee share options in small firms, and enhance the EIIS scheme to encourage investment in small firms.
“The Irish economy is starved of investment. Years of under-investment, coupled with Ireland’s growing population, is leading to serious bottlenecks in transport, education, broadband, housing and other public infrastructure. Capital expenditure must reach 4% of GDP as soon as possible and investment must be targeted strategically,” said Mr Noonan.
The submission also identifies a number of priority areas for investment such as: Improving broadband infrastructure nationwide; improving public transport links and motorway networks; addressing housing shortages, and enhancing education and in-work training.
“Budget 2017 will chart a course forward at a time when Ireland’s economic future could follow a number of trajectories. Small businesses make up 99% of our enterprise base and employ half the private sector workforce. More than anything, the upcoming Budget must deliver competitiveness improvements to allow small businesses to put their best foot forward, domestically and internationally,” concluded Mr Noonan.
© 2016 - Checkout Magazine by Niall Swan
Image courtesy of www.sfa.ie