An Ennis economist is warning that tax increases will be needed to deal with the fallout of COVID-19 despite claims to the contrary from Fianna Fáil and Fine Gael.
The framework for a coalition government, approved by the parties yesterday, says there will be no increases in income tax or the USC during the recession to come and no cutting social welfare.
However, a report from the IMF has warned a recession to rival the Great Depression is looming, with Irelands’ GDP to fall by a predicted 6.8%.
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Dr Micheál Collins, who is an assistant professor of social policy at UCD, expects it may be even worse than that but is confident that tax increases will be necessary to foot the bill.
