Government fiscal relief measures, according to TASC, result in substantial revenue shortfalls for the Exchequer, amounting to billions.
In a 2014 analysis, The Advocacy for Social Change (TASC) found that tax breaks in Ireland tend to increase income inequality. The report, however, did not provide specific information on the impact of these tax breaks on the overall budget or economy, or which particular tax breaks primarily benefit the wealthy.
According to TASC, tax breaks disproportionately benefit higher-income individuals and corporations, thereby widening the income gap between the wealthy and lower-income groups. This is because tax expenditures reduce government revenue that could otherwise fund social programs or redistributive policies.
The report also highlighted that some tax breaks bring little or no actual benefit to their declared aim, yet they serve as a politically acceptable form of cash handouts to businesses. TASC suggested that the Government should only introduce new tax benefits after a careful evaluation of their effectiveness and impact on income inequality.
In 2014, the Exchequer lost approximately €22.95 billion in revenue due to various tax breaks, reliefs, privileges, or shelters. TASC identified 126 different tax breaks as contributors to this revenue loss. Moreover, the report indicated that some tax breaks are limited to wealthy individuals and corporations, having been introduced through lobbying by special interest groups.
It's important to note that the analysis did not specify which specific tax breaks were ineffective or inefficient, nor did it provide information on how the revenue loss from tax breaks affects the overall budget or economy. Additionally, the report did not provide any potential solutions or recommendations to address the revenue loss from tax breaks.
Furthermore, the report did not specify which tax breaks were among the 'undead' reliefs, exemptions no longer open to new claimants but still in use, which led to an additional €157 million loss in 2014. It is not clear from the provided information whether the tax breaks that are limited to wealthy individuals and corporations are among the 'undead' reliefs.
In conclusion, while the TASC report in 2014 shed light on the role of tax breaks in increasing income inequality, it did not delve into the specifics of which tax breaks are most detrimental or provide solutions for addressing the revenue loss from these breaks. For a more comprehensive understanding of TASC’s 2014 report or analysis on tax breaks and income inequality, it is recommended to consult TASC’s own published reports from that year or related academic/social policy literature.
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