Plus increased excise on fuel among other things.
Apologies if this is covered elsewhere
For what purpose, to piss more away on the welfare state? At what point do we say enough is enough?
Someones gotta stump up the cash for those asylum chancers forever homes.
I think that's exactly what will happen. It's also meant to cover our transition to "green" energy, make what you will of that...
No to mention the free cars they get.
Just madness, top rate of tax kicking in at 35k and they come up with crap like this; there will be zero point in owning a house - zero point buying a house, paying interest plus capital over 30 years to end up with it being taxed when you die; it works if you assume ever increasing house values but this is unrealistic from here given how stretched they are relative to average incomes; key workers forced to live ever further away from work places so tax them on getting to work - hard to know where to start with this madness
Just to be clear.
The property isn't being taxed when you die. The person receiving it is.
Big difference.
I am 100% for higher fuel excise / carbon taxes and property taxes, on the condition that taxes on working are reduced.
After 37k approx, a marginal tax rate (MTR) of 48.5% kicks in.
In my opinion, somebody on below median earnings should face maybe 30% MTR.
The top MTR should start at maybe double average earnings, say 100k.
Yes, but they suggest increasing the annual property tax too. So you pay higher tax that is not based on your income or ability to pay, plus the person receiving it also pays higher tax.
I presume this "commission" is just focused on possible ways to increase the tax take and is completely disregards societal issues.
If FG sign up for any of this then they are finished as a party, which they may well be anyway. They have become addicted to spending and lack a leader with courage or conviction. Good man for a hollow sound bite though.
Basically stiffing the middle income PAYE worker again.
How did you manage to conflate property and inheritance taxes with middle income PAYE workers?
They’ve no specific links.
You might as well say they’re stiffing women again, or brown haired people.
Property tax should be abolished. There would be no need for it if the cost of servicing our national debt wasn't so high and the only reason it is high is due to the incompetence of successive governments.
It's such bollix, you are there for 20-30 years paying off a house and when it's finally done you're still merely renting it off the government.
I really wonder what went through the politicians heads when they were bringing it in. I can imagine the politicians in 2012/13 all sitting around a table with a glass of wine in front of them gleefully hatching their scheme
"Ahh we're stuffed lads, we have no money, what do we do?"
"D'ya see all those ordinary folk living in their fancy houses? well we'll just make them pay every year to hold on to them"
"But what if they have no money themselves?"
"Never mind that, they'll find the money from somewhere, feck em. Make them pay anyway"
"Great plan! Let's do that"
The "incompetence of successive governments" to which you refer goes all the way back to the FF/Jack Lynch government which won the 1977 General Election by promising to abolish rates on private houses and car tax among other goodies. If we still had rates then there wouldn't be any need for property tax, water charges, refuse charges or any of the other measures that have been tried in the last 40+ years in a vain attempt to recover that lost revenue source.
If we still had property tax by another name there would be no need to bring in an additional tax to do the same thing? LOL
There would be no need for the additional revenue if they were just a bit more careful with their spending. If they didnt bother bailing out private banks to the extent they did for example or building a massive motorway network while at the same time telling people to stop using cars because they're bad for the environment
But why the inheritance tax in the first place? Punishing people for being left something by a dead relative or friend. If anything inheritance tax should be reduced not increased.
For at least 100 years we have known that property taxes are the best taxes.
We need more property taxes, not less.
We need less tax on workers. It is crazy that workers face 48.5% MTR on 37k+.
Practically every country in the world has property taxes. Why? Because we have known for decades that they are the best taxes.
That's why they are so common.
Have a read of Mirrlees on optimal taxation:
See chapter 16 on property taxes:
Food. water. Shelter.
The very basics of living should not be subject to tax. It's rediculous that inheritance tax here is already among the highest in the world and they want to raise it further. It's especially bad given the crazy cost of property lately. If I were to inherit my folks place it would cost more in tax then the purchace price of my own home 20yrs ago and an unimaginable multiplier of the cost they paid for it in the late 60's.
Personally I don't think any inheritance tax should have to be paid on a family home. I suspect inheriting a property will be the only way many younger generations will ever manage to put a roof over their head and now the government want to make even that impossible.
How is it punishing people?
Unless you think income tax and VAT are also punishing people?
Its a tax on unearned income, same as all others.
Civil servants don't think like you suggest (which seems to be a joke)
They analyse decades of economic and tax theories.
I suggest you read the first three pages of chapter 16 of the Mirrlees report on optimal taxation
If you are designing an optimal tax system, you should have property taxes in there.
punishing them? if your father leaves you €300k in his will, you currently pay no tax on that.
if they leave 500k, the tax payable is 55k. it's hardly punishment.
one of the benefits of an inheritance tax is to prevent the creation of landed gentry.
Inheritance tax is a minor tax that hardly anybody pays, due to the exemptions.
Yes, it does generate strong opinions.
Our CAT rate is high, yes, and SF want to increase it further, yes.
But there are exemptions, so few people pay CAT.
Mirrlees chapter 15 covers taxes on wealth transfers:
"Taxation of wealth is a topic that excites strong passions. Some view it as the most direct means of effecting redistribution and key to achieving equality of opportunity. Others see it as the unjustified confiscation of private property by the state. Given these opposing viewpoints, it is not surprising that this is an area of taxation where international practice differs dramatically. Most OECD countries have taxes on income, spending, corporate profits, and so on, with recognizably similar goals. Practice with taxes on wealth varies widely. Some countries levy taxes directly upon wealth holdings, while others only tax transfers of wealth. There are some countries that do not tax wealth at all."
If I were to inherit my folks place it would cost more in tax then the purchace price of my own home 20yrs ago and an unimaginable multiplier of the cost they paid for it in the late 60's.
what has the cost they paid in the 60s got to do with anything? or the cost of your own house from 20 years ago?
if you're an only child and your parent's home is worth €1m, you have inherited €1m. the fact that that was not €1m sixty years ago is bizarrely irrelevant. you are the beneficiary of a €1m bequest, and you get to keep over €780k of that (if you're an only child).
So basically more money transfers so as to buy more votes for the government. As well, basing this on the book "What everone needs to know about Taxes" this will have a negative effect on the economy. Having a state body propose this is akin to a fox reviewing chicken coop security.
"Tax the rich."
OK, we will tax people on the value of their property, and the rich will pay more because their properties are valued higher.
"Ah no I don't want to pay tax though."
This sums up the problem in this country, too many people think they should pay no tax and that the rich can carry the burden. Too many people pay little to no tax, as was proven during the covid pandemic when income tax collections didn't drop in proportion with the amount of jobs that were lost or furloughed.
Farming and business assets are effectively exempt from CAT, which more or less amounts to a tax on Dublin property.
If we're aiming to prevent the creation of landed gentry, we're doing a rather poor job of it.
Ireland already has possibly the worlds highest inheritance taxes. There is absolutely no reason or justification in raising them as it's not like Ireland isn't already the top tax gouger in th this area, as it also is with CGT. VAT is also one of the higest rates around and I'm not aware of any other country with DIRT tax. And then there is VRT, again, a massive gouge of a tax that puts Ireland in a class of it's own internationally.
Maybe this country could learn to live within it's means by not already having the second highest paid civil servants in the EU and then going and having talks aimed at paying them even more.
This is why the commissioner wants to raise taxes, so the state can afford to pay civil servants even more than they are already getting.
As for raising excise on fuels - in a country where the operating costs of a car are already almost the highest in the EU, that is not justifiable:
"Ireland tops the league for the cost of taxing and insuring a car, and is second only to Holland for the cost of buying a new car."
Liz Truss is suggesting a VAT cut to compensate for the spiralling cost of energy, and some boof head here wants to increase the cost of energy. An absolute head case disconnected from reality.
This commission realise we are far too reliant on the tax take from 10 companies that in 2021 paid over 50% of the Corporation Tax receipts collected. And 100 companies paid over 80% of the Corporation Tax collected last year. https://www.irishtimes.com/business/economy/top-10-companies-now-pay-more-than-half-of-corporate-tax-1.4553695
I completely agree with you that current spending needs to be reigned in rather than increasing tax rates as proposed, but how the hell do we do this given the news this week of the latest public sector pay rise.
Not so sure about property tax. But definitely inheritance tax needs to increase. "Family money" is the biggest single factor in maintaining socio economic inequality in Ireland.
"Ireland has the highest death taxes in world" https://www.independent.ie/business/irish/ireland-has-the-highest-death-taxes-in-world-30158169.html
So what do you see as the justification in increasing death taxes when they are already very high? If they were low to begin with... but they aren't.
Socio economic inequality: What you are on about is socialism. Ireland already has an incredibly generous social welfare system and low paid Irish workers are the lowest taxed in the EU.
Ireland is 148th in the world for social inequality. Australia is better at 158th.
Australia doesn't have any death taxes, so it would seem they aren't the magic bullet you think they are.
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