Oireachtas Joint and Select Committees

Tuesday, 19 June 2018

Committee on Budgetary Oversight

Priorities for Budget 2019: Discussion

4:00 pm

Dr. Seán Healy:

Everyone is saying corporation taxes will not last. We suggest it should be dealt with in one-off expenditure that one does not have to repeat over the next following years. For example, if one builds 10,000 houses with €2 billion, one does not have to build them next year. We propose the money should be used in that way and not put into recurring expenditure which we may not have next time. That would be the main protection.

We have between 25 and 30 suggestions about what to do with taxation. One of the issues is broadening the tax base. That is more important to us, then chasing some of the other stuff.

The issue with the minimal effect of corporate tax rate at 6% is for fairness purposes. There is something profoundly wrong with a situation where somebody with a relatively low income winds up paying 40% on PAYE, along with other levies, social insurance and so forth, while a corporation which is making hundreds of millions of euro in profit only pays 2% in corporation tax. That is ridiculous and profoundly unfair.