Cut income tax - today's @thecurrency column. Punitive personal taxes were introduced in Ireland 18 years ago to address a fiscal crisis that is long over. Last year the government took in almost €45 billion in personal income taxes, up from €15 billion in 2010. How has it used that three-fold increase (yes, that's a trebling) of income tax, USC and PRSI revenues? Annual social expenditure rose by €25 billion 2015-2025, when the economy was growing strongly. Having kept the lid on public sector pay from 2008-2016, when it stood at around €20 billion, it has since soared by €16 billion to €36 billion last year. What scrutiny there is of government spending is too focused on one-offs (hospitals and bike sheds). There is little examination of annual recurring spending, of almost €50 billion on social spending and the €36 billion spent on the public service pay bill. Both rise by additional billions every year, as does almost every other spending line. Ireland badly needs a Taxpayers' Alliance, because politicians are certainly not standing up for taxpayers. Across the political spectrum, parties all want ever more spending. None is calling for fundamental reform of one of the most punitive personal tax regimes in the world (ranked second worst in the OECD by the Tax Foundation).
