So much for a low tax government

The four-year fiscal plan's reliance on tax increases, rather than cuts, has the potential to damage the economic growth that has impressed global markets, writes Danny McCoy

Michael Noonan, Minister for Finance, with Michael McGrath, assistant secretary of the budget, taxation and economic division. Photo: Feargal Ward

The government's new four-year fiscal plan sets out a credible approach to getting the public finances back on track, and provides greater clarity on the way forward. It nevertheless gets it wrong on a number of fronts.

As a road map for recovery, it relies far too heavily on tax increases, rather than current expenditure reductions in reaching budgetary targets. This has the potential to damage economic growth, which is so crucial to ...