Thursday, 17 February 2005
Department of Finance
There have been reductions in tax rates under most tax heads since 1997. At the same time the tax yield to the State has continued to rise owing to the extra economic activity accompanying that policy. In some cases, such as capital gains tax and corporation tax, the tax yield increased substantially after rates were cut. That extra tax revenue has been used, among other things, to reduce tax on the ordinary PAYE worker, remove low-income earners from the tax net altogether and fund the provision of increased public services.