The Tánaiste and Minister for Finance, Brian Cowen, today (Thursday 14 February) announced the establishment of a Commission on Taxation, fulfilling the commitment in the Programme for Government, to review the structure, efficiency and appropriateness of the Irish taxation system.
The Commission is invited, in the context of maintaining an equitable incidence of taxation and a strong economy, to consider the structure of the taxation system and specifically to:
consider how best the tax system can support economic activity and promote increased employment and prosperity while providing the resources necessary to meet the cost of public services and other Government outlays in the medium and longer term;
consider how best the tax system can encourage long term savings to meet the needs of retirement;
examine the balance achieved between taxes collected on income, capital and spending;
review all tax expenditures with a view to assessing the economic and social benefits they deliver and to recommend the discontinuation of those that are unjustifiable on cost/benefit grounds;
consider options for the future financing of local government, and,
Investigate fiscal measures to protect and enhance the environment including the introduction of a carbon tax.
A Wales Commission on taxation would will help establish the framework within which tax policy will be set for the next decade at least, taking a strategic view, in a considered and balanced perspective that recognises the evolving challenges Wales faces.
The membership of the Commission should consists of representatives from the Social Partners - representing the business, trade union, farming and voluntary sectors - the accounting and tax advisory sectors that advise private sector business, both small and large, and includes economic expertise and people who have wide experience in central and local government.