DUBLIN: Renua Ireland will propose a flat rate income tax of 23 per cent when it publishes its pre-budget submission on Monday.
The party has made a flat tax the core proposal of its submission, saying that Ireland should move to this system over a period of years.
The party, under leader Lucinda Creighton, has been working on the proposal for several months and has argued that it would reward work and also encourage job growth.
It provides that everybody irrespective of income pay the same tax rate – it has proposed 23 per cent.
The party has contended the current tax regime does not provide enough incentive to work, especially since the introduction of USC.
“Relative to other OECD countries, our tax base has contracted leaving people earning relatively modest salaries paying most of tax collected from household incomes,” the document has stated.
