Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have no issue with a debate occurring in this regard. I disagree on the need for a wealth tax. The reason I disagree with it is that, first, we already have a set of wealth taxes in our country - capital acquisitions tax, CAT, capital gains tax, CGT, and DIRT, and one could argue that the local property tax, LPT, is also a form of wealth of tax. We already have four taxes that perform many of the functions that tend to be associated with the operation of wealth taxes. In fact, CGT and CAT are set at a rate of 33%, and many of the different analyses that have been done in comparing those taxes with their equivalent taxes in peer countries suggest Ireland has among the highest capital taxes compared with similar countries. The reason I do not believe there is a need for a further tax on wealth in Ireland is that we have four different taxes that, in their differing ways, perform that role.

For those who would still advocate the case for tax beyond that, it begs the question regarding how it would be implemented. My understanding is that the other European country that recently looked at the role of a wealth tax is France, and France abandoned the use of that tax because of all of the difficulties it had in its implementation.

I cannot help but be struck by the contradiction that those who make the case for a wealth tax also oppose the existence of the local property tax and call for its abolition, which means that those who live in mansions would gain the most from the implementation of their policies. It is the most regressive tax cut advocated by anybody in the Oireachtas. To argue, on the one hand, that we need a further wealth tax while arguing also for the abolition of the LPT is inconsistency at best. In addition to the LPT, as I said, we already have CGT, CAT and DIRT, all of which, in effect, play a role in taxing what approximates wealth at a rate that is very high, 33%.

That being said, of course, I utterly respect the fact that other colleagues in this committee take a very different view from me on that matter. I respect why they are making a case for it but I do not believe the place in which we should indicate the role of that debate is in the Finance Bill. For that reason, I cannot accept this amendment.