The government needs to rethink Ireland’s income tax rates if it wants to stop young people from emigrating and attract top talent to the country, Ibec director general Danny McCoy has said.

Speaking in advance of the Ibec CEO conference, taking place in Dublin today, Mr McCoy said the tax burden was too high and the negative impact on the wider economy too great.

“Income tax rates are out of line and are a disincentive to work, consumption and job creation. If we want to stop our young people from emigrating, and attract talent and investment to the country, we need to act,” he said.

“At 52 per cent we now have one of the highest marginal tax rates in the OECD, well above the average of 36 per cent. It also kicks in at a low income level,” he added.

About 400 business leaders are expected to attend the CEO conference to discuss the challenges and opportunities ahead for the Irish and European business community.