Irish Labour Party Pledges To Close Loopholes For High Income Earners

by Jason Gorringe, Tax-News.com, London

13 May 2003

During the its annual conference last week, the Irish Labour Party passed a motion pledging to review the country's personal taxation system, and calling for increases in taxes on the wealthy to finance improvements in public services.

The motion stipulated that tax rates should not increase for workers earning below EUR60,000 per year. Instead, according to Labour leader, Pat Rabbitte, fresh investment in public services should be funded by changes to the capital gains tax regime.

The party chief also expressed an interest in closing off tax loopholes and targeting tax shelters. "I think there is a necessity to look at the loopholes, to look at the shelters, to look at the hideways, to look at those who are exempt from tax," Rabbitte told the conference.

He also criticised the government's handling of the current fiscal surplus, which he said should be used to finance public services rather than capital projects. "If we borrow prudently to fund capital programmes, we can release some of the surplus on the current side to make sure some of those 250 beds in Dublin are not closed and community employment schemes are not cut," the Labour leader observed.

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