Government should take integrated approach to Budget 2010 as Ireland's total tax-take plummets towards record low

Budget 2010 as Ireland's total tax-take plummets towards a record low.  As Ireland faces a range of interrelated crises and Government prepares its Budget for 2010 it is important to realise that:

·        Ireland is not a poor country;

·        Ireland’s total tax-take is one of the lowest in the developed world and continues to fall as a percentage of GDP;

·        15.8% of people are at risk of poverty with incomes below €12,000 for a single person or €28,000 for a family of four;

·        31% of all the households at risk of poverty today are headed by a person with a job. 

·        A further 50% are headed by a person outside the labour force (i.e. older people and people who are ill, have a serious disability or are in caring roles) and are totally dependent on social welfare.

·        It is both essential and possible to protect the vulnerable in the choices Government makes;

·        An integrated approach to tackling the country’s current problems is essential if they are to be addressed successfully.

An integrated approach requires Government to

1.      Increase the over-all tax take while keeping Ireland a low-tax country and without raising income tax rates;

2.      Secure better value for money in the delivery of our public services;

3.      Reform the public sector;

4.      Target expenditure cuts where required but ensure that vulnerable people are protected. A good starting point would be the elimination of waste identified in the Comptroller and Auditor General’s recent report;

5.      Focus expenditure on the common good to provide required infrastructure and public services.

Ireland is at a critical moment in its development and Government decisions in Budget 2010 will have a huge impact on the future. It is essential that the vulnerable are protected.

Budget Choices Document can be downloaded here