Mick Wallace (Wexford, Independent) | Oireachtas source

This is not a normal time in Ireland to try to introduce a property tax.

In principle, in a healthy climate I would not have a problem with the notion of a property tax. However, we are approaching a figure of 400,000 homes in negative equity, including those in mortgage arrears. In addition, there are approximately 450,000 people unemployed, meaning about 150,000 households are affected by unemployment. On top of this, a further 150,000 households are in the names of pensioners. This amounts to almost half of the property pot and one can see it will be very difficult to apply a property tax.

It was interesting to hear the comments of Dr. Peter Bacon when challenged and asked if introducing a property tax was a good idea. He said he did not think it was a good idea based on current economic circumstances and that he believed there was nothing a property tax could achieve that could not be achieved by adjusting income tax rates. The argument being made is that a property tax would broaden the tax base, but it would not. It is a residential property tax that would be paid from the incomes of home owners or occupiers; therefore, it would be paid for from their incomes and land on PAYE employees and the self-employed.

Also, the Minister should realise that Ireland is probably the only country in Europe where significant numbers have paid stamp duty on their primary residence, a practice unheard of throughout Europe. For example, anyone who paid €200,000 for a house, paid stamp duty at a rate of 6% or €12,000 on his or her property. This figure becomes €25,000 through a 25 year mortgage or €1,000 a year in stamp duty.

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