Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

In regard to the universal social charge, USC, those in political circles who advocate such a position reference the high marginal tax rate as a tax on employment that is off-putting to investment and employers who want to create jobs. The Economic and Social Research Institute, ESRI, which will appear before the committee in the future and which has provided us with its view on this matter, has stated that this notion needs to be tested. In its view, employment is rising and the bigger challenge in terms of employment is child care. The ESRI believes that the impact on employment would be greater if rather than the USC being reduced, the €4 billion accruing from it were to be invested in the provision of affordable child care. Is research available that can hold up the argument that high marginal tax rates are a drag on investment?