The Framework Document being used by the Social Partners in the ongoing discussions on an economic renewal plan makes specific reference to the work of the Commission and notes that "the Government is asking the Commission on Taxation to identify appropriate options to raise tax revenue".
This being the case, it would seem that the Commission on Taxation has an even bigger task on hand than originally envisaged, in that in its original terms of reference were framed in the context of commitments to keep the overall tax burden low. That of course was almost a year ago - an aeon in terms of the economic developments since.
The Framework Document is short on tax specifics - it states:
"The adjustment to be achieved through further taxation measures will be informed by the following principles:
- Changes to be fair and equitable with a higher proportion falling on higher incomes while minimising distortionary effects between different forms of tax
- Support the productive sector of the economy to keep Ireland competitive
- Ensuring that tax expenditures are fully evidence-based
- Broaden the tax base and make changes that are straight forward, easily understood and easy to administer
- Additional progressive tax measures consistent with the social solidarity approach
Additionally, given the urgency of the situation and the role that taxation will have to play in bringing stability back to the public finances, the Government is asking the Commission on Taxation to identify appropriate options to raise tax revenue and to complete its report by September 2009."
September 2009 was the original deadline established in February 2008 for the Commission to report back.