The Irish Tax Institute has recommended that the next government lower the marginal personal tax rate to 50% and reform PRSI.
In its ‘Tax Strategy for the Next Government’ document, published on Thursday, the Institute has made a series of policy recommendations that it believes will foster an “innovative and productive” domestic business sector and attract foreign direct investment.
Recommended measures include broadening personal tax base, driving productivity among SMEs, and setting out clear housing and climate goals.
The proposals are intended to shore up economic vulnerabilities identified by the Institute such as Ireland’s reliance on a small number of multinational companies for tax receipts and employment, the increasing cost of doing business, the housing crisis, and creaking infrastructure.
The Institute said that international investors have shifted their focus to Ireland’s personal tax system following the introduction of the minimum 15% global corporation tax rate.
“The cost of employment is a key consideration in …