Ireland takes a smaller share of national income in tax than most EU countries, according to new research by the ESRI.
The economic think-tank found that this is true, even when taking account of recent Irish tax increases.
The share of tax in national income here remains well below that in countries such as Germany, Austria and Scandinavian countries.
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The extra tax revenue in these countries comes from applying higher income tax rates lower down the income range, so that they are paid by low, middle and high income earners alike.
Research professor with the ESRI, Tim Callan, explains how the gap arises:
