The Green Party in government would increase the total tax take through higher taxes on business, energy users and financial institutions, the party said yesterday.
Ireland's tax take as a percentage of Gross Domestic Product was among the lowest in Europe, according to the party's economic and social affairs spokesman, Mr Dan Boyle. The Greens would increase the tax take at a rate of 0.5 per cent of GDP per annum to help pay for an extra €1 billion in public spending each year, he said.
The incoming government's challenge would be to meet the growing public demand for services at levels provided in countries with much higher proportional tax takes, he said, and the effects of our low tax take, "such as the deleterious effects on our health services", were obvious.
The Green Party is proposing a 15 per cent rate of corporation tax, as opposed to the current favoured rate of 12.5 per cent. "The ESRI has said a 17.5 per cent rate of corporation tax would be competitive," he said.
The Greens also support a 5 per cent levy on financial institutions and a 3 per cent tax on the industrial use of energy, rising to 5 per cent.
Mr John Gormley TD said the main parties "are not prepared to say what they are planning to do on taxation. Fianna Fáil and the Progressive Democrats are putting forward the notion that they can improve public services without explaining how they will pay for it. This is a myth."
According to "Spending Within Limits", the party's economic policy document, the party anticipates a growth rate of 3 per cent, and plans to limit public expenditure increases to 5 per cent over and above economic growth.