The headline fiscal position this year is very strong but only because of windfall corporation tax receipts that cannot be relied on. Proposed cuts to income tax rates or bands and to the Universal Social Charge have all been flagged in the media. But this is mainly due to the surprisingly robust and potentially unsustainable performance of the corporation tax yield. The corporation tax yield is extremely vulnerable to evolving international tax games and to decisions made in other countries. [ Paschal Donohoe: ‘Not spending every cent you have is the best insurance policy’ ][ Era of runaway increases in Ireland’s corporation tax receipts is over, McGrath says ]So why are tax cuts on the agenda?

Source: The Irish Times September 18, 2023 08:03 UTC