Ibec has called on the Government to reduce income tax at the next budget. This appeal comes as an effort to drive consumer spending and aid recovery at its CEO Conference 2015, attended by business leaders and An Taoiseach Enda Kenny.
In his address, Ibec Chief Executive Danny McCoy said that the current rate remains out of line internationally and makes it difficult for companies to attract and retain skilled workers.
"The decision to retain a 52% higher marginal tax rate for those earning over €70,000 was short-sighted and will cost jobs and revenue. A single worker earning €75,000 in Ireland takes home about €6,000 less than a similar worker in the UK."
According to Ibec, strong growth, a rising population and low interest rates are also signs to ramp up infrastructure spending to tackle housing and transport problems, as well as gaps in health, education and energy.
McCoy warned that currently there is no planning for significant population and economic growth, adding, "We need to dramatically ramp up capital spending if we are to avoid the mistakes of the past, when significant infrastructure gaps constrained growth."
"The Government should commit to spending 4% of GDP on infrastructure by 2020. We also need to reform and reinvest in our education system, and the skills of the workforce more generally."
© 2015 - Checkout Magazine by Jenny Whelan.