Friday, 6 September 2013
The Small Firms Association stated that the announcement today by the Minister regarding the proposal to increase PRSI Class S for the self employed shows “a Minister who does not understand the challenges being faced by small business owners in Ireland today.”
“The economy and Irish workers are taxed enough. Additional costs will push already struggling owner managers out of business and fuel the unemployment crisis.”
McNally said that in order to solve our unemployment problem, Government are relying on more entrepreneurial people to set up new businesses. “It is only reasonable that they are afforded an equal level of protection as their employees in the event of business failure or illness. However, this must be in the form of a voluntary PRSI contribution. Any proposal which provides social welfare benefit for owner managers cannot be viewed as an opportunity to impose additional taxes on small business.”
Ireland now has one of the highest marginal tax rates in the OECD. Between Budget 2008 and Supplementary Budget 2009, marginal income tax rates for the self employed, increased from 46.5% to 55%. The severity of these increases in a short time frame has had a dramatic impact on business owners, taxpayers and on competitiveness. These levels of tax rates are unusual across OECD countries and it is an obstacle for entrepreneurs and business start ups.
“Entrepreneurs are the most effective providers of new jobs and yet they continue to be marginalised at the very time when they could make the greatest impact to recovery and job creation and it is vital that Government does not undermine its ability to drive growth and create jobs,” said McNally.
For further information and comment, please contact: Avine McNally, Acting Director, Small Firms Association. Office 01 605 1633 or Mobile: 087-645 0205.