Oireachtas Joint and Select Committees

Wednesday, 6 July 2022

Committee on Budgetary Oversight

Economic Quarterly Report - Summer 2020: Economic and Social Research Institute

Photo of Neasa HouriganNeasa Hourigan (Dublin Central, Green Party)
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Great. I concur with Dr. McQuinn on the targeted measures aspect. Following on from that, one of the paragraphs, which I am slightly truncating, so I may perhaps be misrepresenting it, refers to the reduction of the taxation burden in general also constituting an unwarranted stimulus into the domestic economy now. We have heard several politicians and commentators talk about how taxation interacts with the cost-of-living crisis now, particularly for those on middle incomes. The ESRI seems to be suggesting that significant changes to the tax burden could actually increase inflation or have an unintended consequence. Will Dr. McQuinn elaborate on this? I ask because I worry that any changes to taxation in budget 2023 could deepen the seriousness of what are already difficult times.