The Irish Congress of Trade Unions is urging the government to reduce its reliance on corporation tax as the National Economic Dialogue kicks off at Dublin Castle today. Representing over 800,000 workers, the ICTU believes that Ireland's current economic model is unsustainable and calls for Budget 2026 to establish a more stable foundation for the economy.

Last week, the Irish Fiscal Advisory Council also expressed concerns about the country's dependence on corporation tax revenue. With potential tariffs from the US and trade tensions looming, the Council warned of the volatility associated with this reliance.

The ICTU is advocating for the Cabinet to develop a new economic model that can create quality jobs, enhance living standards, and sustain growth in the long term. General Secretary Owen Reidy emphasized the need to move away from the short-term gains of corporation tax windfalls and focus on strategic planning for the future.

Recent reports indicate that corporation tax receipts may exceed initial forecasts due to BEPS reforms requiring large corporations to pay a minimum tax rate. However, uncertainties remain regarding the future of multinational companies in Ireland.

The IFAC highlighted the lack of a medium-term forecast due to incomplete spending profiles and the government's reluctance to commit to a fiscal rule. This absence of a clear plan or strategy raises concerns about Ireland's economic direction.

Reidy pointed out the significant wage disparities and infrastructure deficiencies in Ireland, stressing the need for Budget 2026 to provide stability and security for workers. The ICTU plans to introduce a New Economic Model in the coming weeks to outline how this shift can be achieved, with discussions taking place at the National Economic Dialogue with government officials.