Mr. Paul Ginnell:

I agree with the Deputy about the term "broader tax base". We are not talking about widening it at the bottom. What we are proposing is a more progressive tax system which takes a more equitable approach than is currently in place. We looked at that in the document and at the suggestions that the system is currently progressive and so forth. Questions were raised in the document on that issue and it inquired a little more deeply into it by looking at the effective tax take as opposed to the overall general tax take in terms of income tax.

We examined the issue of a property tax but we called it a comprehensive property tax which is, in effect, a wealth tax. It does not just consider housing but looks at broader wealth in terms of different types of assets and wealth people might have and income from stocks, shares and other wealth sources. Much of that is not taken into account in the tax system.

It looks at taking that in and including it as a focus on people's broader wealth, which would include a property tax, and at the wider issue of what constitutes a property in terms of how that is approached. Over ten years, which is the period on which this is based, this would widen out to include everybody or most people. However, we are proposing that initially, taking account of the current situation, it would be applied to people earning above €100,000 and not to people at the bottom, including low income earners. It could then be expanded over time as incomes are raised. Consideration would also have to be given to taking into account the debts people have on properties or houses. This is not about the property tax as it currently stands, although it is discussed in the paper, rather it is about the need for a broader understanding of what constitutes a property and what is wealth.

The Commission on Taxation looked at the issue of tax expenditures and identified a broad number of different tax expenditures which mainly benefit people who are better off. Within our proposals, we intend to look at this because it impacts on the effect of tax which people actually pay.