Tax cuts 'not the way to fix crisis'

Think-tank says reducing income levy helps rich

- PAT FLANAGAN

TAX cuts in the Budget should not be used as a short-term fix to the cost of living crisis, a think thank claimed yesterday.

Social Justice Ireland said untargeted measures tend to help the better off rather than those in need.

It also called for an increase in carbon tax but said its proceeds should be used to protect those most affected by it.

Social Justice Ireland urged Finance Minister Michael McGrath to increase the PAYE and Earning Income tax credits for all workers by €5 per week at a cost of €670million.

It also wants an increase in employers' PRSI which it says is only half of the EU average.