The immediate abolition of most tax breaks for business has been sought by the Irish Congress of Trade Unions (Ictu) in a pre-budget submission to the Government.
Announcing details of the submission yesterday, Ictu general secretary David Begg said the budget should herald a "fundamental policy shift", involving a switch of focus from the economic to the social. "In the past we have been told that we must make money before we can spend it," he said.
"Today we have the money. Today we have the opportunity to address the many serious social and structural deficits in our society."
Ictu is seeking a range of tax changes in the budget, as well as measures on childcare, social cohesion, lifelong learning, health, overseas aid and labour law compliance.
It also wants the Government to reintroduce a royalty on income generated from natural resources extracted from under Irish land or waters.
"As the gas, oil or minerals under the seas off Ireland, or under land, belong to the Irish people, royalties at 12.5 per cent of production should be reintroduced. . . for future discoveries," the submission says.
Speaking at the publication of the submission, Ictu economic adviser Paul Sweeney said it was "only a matter of time" before oil was discovered off the Irish coast.
In a wide-ranging set of proposals on tax, Ictu is seeking to have the corporate tax rate of 12.5 per cent, the lowest in the EU with the exception of Estonia, increased to 20 per cent.
In the absence of that, however, "banks and companies operating in sectors with little competition should have a special sur-tax on exceptional profits".
Mr Sweeney said Ictu was against tax breaks for businesses except those that genuinely generated new economic activity. "Most tax breaks for business, especially the property-based ones, should be immediately abolished," the submission states.
Ictu is also seeking reform of the way the tax system is administered by the Revenue Commissioners. "It should be rebalanced away from the pursuit of PAYE workers to the big evaders, especially in the building industry."
A range of measures to promote social cohesion are also proposed, including weekly increases for pensioners of €16 in December's budget and €14 in 2007.
Ictu wants the lowest social welfare payment to be increased by €14 to €162.80, and an emphasis in the budget on measures to alleviate child poverty.
It also calls for the artists' tax exemption to be retained, but with an upper limit.
"Without an upper limit, it is regressive. It should be retained to encourage artistic endeavour for artists with low incomes."
The tax exemption on stud fees, however, should be abolished, Ictu claims. "This iniquitous subsidy to wealthy breeders should be immediately terminated. The sector is not an infant industry and does not require State financial support. In spite of the lobbying of the British and European bloodstock industry on behalf of the stud owners here, no case has been made by any of them for PAYE workers to subsidise high-earning stud farmers and breeders."
