Dublin: Fianna Fáil Justice Minister Jim O’Callaghan has called for a reduction in Ireland’s marginal tax rate, describing the current system as “irrational, demoralising and contrary to the common good.”
The minister said workers should not be subjected to excessively high taxation except in extraordinary circumstances. He made the remarks while speaking at a memorial event for Fianna Fáil founder Seán Lemass at Deansgrange Cemetery.
O’Callaghan pointed out that employees earning more than €44,000 annually currently face a marginal tax rate of 52 percent once income tax, Universal Social Charge (USC) and PRSI are combined. He argued that the burden placed on middle-income earners is excessive and discourages work.
“A government must ensure that work is rewarded and not penalised through excessive taxation,” the minister said, stressing that the present system places an unfair burden on ordinary working people.
He acknowledged that higher taxes had previously been necessary to address funding pressures but said future budget measures should focus on easing the burden on workers. Although he is not directly responsible for financial policy, O’Callaghan said he hoped the upcoming budget would include measures favourable to working families.
The minister added that decisions on tax policy ultimately rest with the Finance Minister and the Minister for Public Expenditure, while also noting that several government backbench TDs share similar concerns about the current tax structure.
O’Callaghan further clarified that the government’s requirement for departments to reduce spending by 0.5 percent would not significantly affect the Justice Department.
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