Social Democrats TD and finance spokesperson Cian O’Callaghan has accused the government of “hollowing out” Ireland’s tax base, leaving it more susceptible to future economic shocks.
The Dublin Bay North TD was speaking following the Irish Fiscal Advisory Council’s criticism of this year’s Budget, which criticised the government for favouring short-term spending over longer-term economic cohesion.
O’Callaghan said, “the government cannot invest in Ireland’s future while hollowing out the tax base.”
“The government has the gall to lecture families about protecting the national finances, yet their latest budget erodes the tax take by €1.3 billion. You cannot invest in the future while hollowing out the tax base. This is simply reckless, short-term politics at its worst,” he said.
The Social Democrats TD said, “instead of strengthening public services, this government is wasting money on tax breaks to boost the profits of fast-food chains.”
“IFAC, the ESRI, the Nevin Institute, and the Commission on Taxation and Welfare all delivered the same warning in advance of the budget – that Ireland’s tax base is too narrow and must be broadened.”
O’Callaghan warned, “ignoring this advice undermines our ability to fund housing, healthcare, education, and climate action in the years ahead.”
He pointed to the IFAC’s latest assessment, which noted the government being unable to forecast a Budget beyond 2026.
“Taking such a short-term approach to the country’s finances has the potential to undermine our economic success and is symptomatic of a government that puts populism before proper planning,” he saod.
“The €1.3 billion giveaway today is tomorrow’s crisis – it leaves the state exposed if corporate tax receipts inevitably fall.”
“The level of hypocrisy is staggering. Ordinary people are struggling with the cost-of-living crisis, while the government splashes the cash to buy political favour.”