Lisa Chambers (Mayo, Fianna Fail) | Oireachtas source

I thank Ms O'Brien and Ms Buckley for their presentations. I am pleased they are focusing on the SME sector because it is our largest employer and very often it gets left behind because we tend to focus on and go after the bigger multinationals as though they are a fix-all for everything. We have left indigenous businesses behind and to fend for themselves for the most part, which they have done very successfully. Reference was made to a share option scheme. Could the witnesses expand on that a little further in terms of how it would work and the costing of it? It will always be difficult for the SME sector to compete with the large multinationals in attracting the best talent. Do they believe a share option scheme would do a lot to assist in that regard or is there is something else we could do to help the SME sector?

A debate is ongoing currently in terms of personal taxation. On the one hand there is the suggestion that we should not lower taxes at all because we have increasing pressures in terms of spending on public services and the question is whether it is the right time to do that. What is the view of the witnesses on that? If we are going to reduce personal taxation, the question is whether we look at the USC or the tax bands. What do the witnesses consider to be the fairest and most progressive way of doing that? I am conscious that if we reduce, for example, the 5% rate of USC to 4.5% we will hit 1.3 million people. If we address the tax bands and leave the threshold for the higher rate at €33,000 and one is earning €33,500 or less there is no impact. What is the fairest way to level those reductions?

The Irish Tax Institute appears to be arguing that the tax base is not broad enough. Is that correct? If it is not broad enough, how can it be broadened? A broader tax base would be a safer option as it would enable us to be more prepared for potential shocks.

What is the Irish Tax Institute's view on the corporate tax rate? Is it economically and fiscally sustainable to be so dependent on receipts from a small number of multinational companies? What recommendations would the institute make to manage volatility in this area?

What is the Irish Tax Institute's view on the proposal to merge the universal social charge with PRSI?