The commission on tax and welfare of Ireland has supported increased tax rates for wealth, property and inheritance fields. This aims to ensure a shake-up of the taxation system of Ireland. The commission has submitted its report to the Department of Finance and it recommends that the take from wealth and capital taxes should “increase materially” as a proportion of tax revenues. The report is set to be published soon.
The report considers property, land, capital gains and capital acquisitions (which taxes inheritance) as the potential source of revenue for the govt.
If adopted, the policies could represent a significant reorientation of the system towards taxing selective wealth rather than focusing more on income. Selective wealth taxes are also likely to include income from shares and money on deposit.
Higher and more extensive property taxes, which would be a typical tax on wealth, were recommended by the commission in the past. This would include a site value tax aimed at capturing the value in land assets that are held predominantly by the wealthiest 10 per cent of households.
However, a full-scale wealth tax, which is generally levied on net household wealth, has not been proposed. Instead, it has proposed targeted taxes on certain income streams which contribute to individual wealth.
It was established last year to “review how best the taxation and welfare system can support economic activity and income redistribution” while promoting employment and prosperity in a “resilient, inclusive and sustainable way”.