NCB Stockbroker Research Says Irish Economy Not To Blame For Falling Tax Revenues
NCB Stockbrokers has published research that
indicates the Irish government's declining tax revenues are not the result
of an economic slowdown but are largely due to tax cuts in the last Budget. According to NCB's senior economist, Eunan
King who detailed his research in the Fixed Income Weekly, a model based on information from the Revenue Commissioners shows that the budget tax cuts lowered the average tax paid by each taxpayer by more
than 6 per cent this year which resulted in a 3 per cent decline overall
in tax revenue. He wrote: 'Against this background, it is
not clear why the Department of Finance estimated an 8 per cent increase
for income tax this year.' Mr King added that 'if there were no tax
cuts in the budget, the model suggests tax revenues would rise 18 per
cent next year, based on an average rise in incomes of 8 per cent. But
even a 10 per cent increase in tax bands and allowances would keep average
tax rates broadly unchanged and provide an 11 per cent growth in revenues.' .
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