A new report from Oxfam that discusses global inequality should be the imputus for Ireland introduce a wealth tax, according to Social Democrats finance spokesperson Róisín Shortall.
“Oxfam’s report, which has been released as political leaders gather at the World Economic Forum in Davos this week, makes for stark reading,” she said.
The report reveals that the richest 1% in the country hold more than a third of Ireland’s financial wealth, with Ireland’s two richest Irish billionaires possessing more wealth than the bottom half of the population.
“In the last Budget, the Government’s tax package widened the inequality gap in Ireland as cuts went to higher earners as well as those on middle incomes,” the Dublin North-West TD said.
Discussing what her party would propose, which is in line with other left-of-centre parties in the Dáil, Shortall cited the Social Democrats’ alternative budget.
“In our alternative budget, the Social Democrats proposed a third rate of income tax of 43% on individual earnings above €100,000. We also called for a net tax on ‘excess’ or ‘super wealth’, with fair exemptions including the value of a family home up to €2 million. Such a tax would be levied at 0.5% on assets over €1 million, or 1% on assets over €2 million.
This goes further than Sinn Féin’s own proposed wealth tax, which dropped taxing net wealth above €1 million in their own alternative budget.
Shortall said that Ireland is “long overdue an honest conversation about the merits of introducing a fair and workable wealth tax.”
“We often hear the case against wealth taxes in terms of their feasibility. However, it is mostly just a question of the political will not being there.”
“We know that more equal societies are more successful with greater solidarity, a better quality of life and lower crime levels. Given the scale of inequality today – as laid bare in Oxfam’s report – it is only sensible to have a proper debate about wealth taxation if we are to create a fairer society.”