The Need for a Wealth Tax in Ireland

Nobody will argue that Ireland is in the midst of a crippling recession, which has left our state dented and on the verge of bankruptcy and occupation by the IMF. However, to say that there is no money left in our country is completely wrong. The gross wealth of Irish households now stands at €1 trillion. The net wealth of Irish households grew by €24 billion last year. Yet our total tax take from all sectors is expected to come in at approximately €30 billion in 2010, among the lowest tax to GDP ratios in the EU. Its clear that some people in this state are not pulling their weight.

The Irish government, backed by a national media obsessed with preserving the status quo say that we must all share the pain. They imply that Irelands wealthy are already contributing more than enough, so Irelands poor must now contribute through the slashing of welfare benefits and public services. The government says that it is impossible to increase taxes on high earners as they already pay a marginal rate of over 50%. This is not quite true, as the marginal rate is the tax paid in the last euro of someones earnings. The effective tax rate these high earners are paying is 20.3%. This means that the frequently quoted statistic of most tax being paid by high earners is misleading. This statistic maybe true of income tax but not of taxes generally. The Commission of Taxation Report lists over 130 tax breaks and exemptions. These are mostly only accessible to high income earners.

The top 1% of our population owns 20% of all our wealth. They owned it before the recession, and will be only too happy to hold onto it while the weak are cut to the bone by our corrupt government on December the seventh.
Sinn Féin propose an income linked 1% wealth tax on assets in excess of €1 million, excluding working farmland. Only the percentagege over the €1 million is taxed, so an individual who's assets are €1.5 million pays 1% of €0.5 million. The provision of an income link will remove the potential pitfalls of those living in homes that have gained in value while their net income remains low. Sinn Féin's calculations, which have been checked by the Department of Finance and leading economists, show that the wealth tax will introduce an extra €1 billion into our national finances in a full year.

The current government will likely say that such a tax would risk a capital flight scenario, where the wealthy move their assets abroad. Such an argument wont stand up as Sinn Féin envisages a wealth tax being based on global assets, much like its French counterpart, the ISF. And for those who say that wealth taxes do not work, just look at France, Switzerland, Holland and Norway, where they not only worked but also introduced additional benefits to raising revenue in those nations. Countries like these are less likely to see over inflated property prices, because nobody wants to overprice their home and have to pay relevant wealth tax on it.
Sinn Féin's wealth tax offers a fairer alternative to the governments slash and burn budget plan. Why cut benefits to the old, the sick and the unemployed when there is a much better alternative available. Fianna Fail and its opposition counterparts wish to protect the super elite and ultra rich who fund their parties. Sinn Féin wishes to protect the ordinary citizens. Its time for the people to make their choice. Its time for change.