Budget and Finance Bill 2010 did nothing to the income tax circumstances of most of the population. There was little the Minister could do in December 2009, having already announced swinging cuts to public service pay which mirrored the experience of the private sector. Following last months announcements, Budget Day will be different.

There can be no doubt now that taxes will be raised quite considerably, not just in 2011 but for several years thereafter. We have still a long way to go before we match the tax predicament of the 1980s, but hopefully we may have learned the lessons of that era when it comes to how we raise taxes.

The first lesson is that high rates don't necessarily improve yields. Income Tax topped out at 65%, Corporation Tax at 50% and VAT at 35%.

Secondly, don't experiment with unproven new taxes. The short lived farm tax was the object lesson there.

Lastly, if you are introducing something new, you'd better make sure it can be enforced. There were reasons a tax amnesty was needed in 1993.

The CCAB-I Pre Budget Submission, covered on here and here, emphasises the risks of being over reliant on any one sector for a large share of the revenue base and the need to get money flowing back into Irish business.