Tax credits and social welfare rates should rise by €5 a week, according to the advocacy group, Social Justice Ireland, in a pre-budget submission.
It also argues for a maximum effective income tax rate of 45 per cent and a minimum effective corporate tax rate of six per cent. The budget should provide a major investment programme and protect public services, it adds.
The submission opposes any further expenditure cuts . "It is long past the time Government realised austerity is not working for Ireland,'' said director Dr Sean Healy.
Speaking a press conference in Dublin today to launch the submission, Dr Healy said the Government’s policies had cut spending, raised taxes, increased unemployment, lowered wages, decimated services and allowed infrastructure to deteriorate on the understanding that austerity would lead to recovery.
Research and policy analyst Michelle Murphy said previous budgets had targeted the poor more than the rich and provided very little investment.
“Without investment there will be no jobs,’’ she added. “Without jobs there will be no recovery.’’
The submission had also calls for the introduction of a 0.01 per cent financial transactions tax to raise €500 million next year. Removing the dyeing process for agricultural and industrial diesel would save €750 million and would have a significant impact on reducing fuel laundering and criminal activity, it adds.
