Entrepreneur want Flat rate of tax to avoid evasion

A radical report by an expert group on entrepreneurship going around the Irish media, has recommended a flat tax on all income of 15pc to 20pc in a long-term strategy to attract corporations, immigrant business people and keep wealthy Irish in the country.

The low flat rate of tax would be on all income and would also be aimed at eliminating evasion.

"High income tax rates results in fewer jobs, results in more people on social welfare, and results in a dying economy," the report by the Entrepreneurship Forum says.

Sean O'Sullivan

Chaired by entrepreneur and venture capitalist Sean O'Sullivan, the forum makes 69 recommendations about improving the number of jobs created by entrepreneurs in the country, including:

• Capping USC at €100,000 for self-employed just as it is for employees.
• Let women share maternity leave with partners.
•  Tax breaks for company-to-company lending to bypass banks.
•  Tight rules on banks using personal guarantees in lending.
•  Remove any barriers to bringing in international banks to the gaps in Irish business lending.
• Attract foreign direct investment from start-ups, rather than just established multinationals.
•  Make Ireland the European trade hub for China.
• Speed up grants for people coming off the dole to start up their own company.

The forum was set up by Jobs Minister Richard Bruton, who will bring the report to Cabinet in the coming weeks and is expected to act on many of the recommendations.