Isme, a business lobby group, has asked the government to embark on a comprehensive package of tax reform with the following budget:
In a pre-budget submission, Isme urged Finance Minister Paschal Donohue to include a 3pc solidarity USC tax on all PAYE workers who earn more than € 100,000 a year.
The proposed reforms include reducing the capital gains tax (CGT) to 25%, with Isme raising an additional € 500 million annually.
Neil McDonnell, Chief Executive Officer of ISME, said:
Isme also proposed abolishing the PRSI transition zone for low-wage workers and replacing it with a PRSI rate of 2 pc with a weekly income of up to € 440 per week. If you earn more than € 440 a week, you will be charged 6 pieces.
Lobby Group estimates that this change will increase takeaway wages for all full-time workers who currently earn less than € 880 a week.
Isme, on behalf of small businesses, also suggested that government spending used to ease ongoing inflationary pressures should focus on those in greatest need through social protection systems.
Other measures proposed by Isme include increasing the number of companies that choose to go public on the stock exchange and encouraging the government to make it easier for employees to invest in such companies. increase.
The group also opposed employers’ tendency to buy accommodation for their staff, arguing that the government should help bring private landlords back to the rental market through taxation. Isme also said that the government would have to deal with the cost of funding a major budget refurbishment for that cost.
“Comprehensive indigenous industrial policy to improve the performance of the SME sector with economic data showing the ongoing differences between the GDP economy, including multinational enterprises, and the domestic economy, which is mostly SMEs. It needs to be reviewed by a number of interested parties, “McDonnell added.
