Billy Timmins (Wicklow, Independent) | Oireachtas source

I concur with most of the contributions made so far. I have an ideological difficulty with the concept of an inheritance tax. Recently, I read an historical document about a landed estate that ceased to exist during the early part of the last century because of the payment of debt duties.

No less than other Deputies, I get around quite a bit. I have never met anyone who likes paying tax. Most people are compliant because they are concerned they might be caught out, but they would avoid paying if they could get away with it. That is human nature and it is important that we acknowledge this.

In Adam Smith's An Inquiry into the Nature and Causes of the Wealth of Nations, one of the four desirable characteristics of taxation is fairness. Something is inherently unfair in a tax that, to be paid, could necessitate the property's sale by a family member. I do not care what perceived echelon of society one is in, be it Arthur Cox's, Arthur Fox's or whoever's. It is immaterial. If a tax is unfair, it is as unfair in Carnsore Point as it is in Malin Head or Merrion Square.

Deputy Creighton referred to students, lodgings, etc. It is impossible to see how that system could be implemented. Another desirable characteristic of taxation is that implementing it must be possible.

This issue will not bring people out onto the streets. We will not have marches about it. While it has received some publicity, most people will not be aware of it until they face the difficult situation of, following a bereavement, they are told by their solicitors or accountants that a large payment must be made. We have all encountered people who were unaware of certain elements of the tax code until they were hit with them. It can cause a great deal of difficulty.

I hope that the Minister of State will accept this amendment. If he does not, it is imperative that the Government articulate why this change has been made. At least let people know about it.

I do not expect to see Government backbenchers on the plinth trying to sell this as something that will gain them favour with the public. However, there is an onus on the Government to point out these things. I believe Deputy Shatter mentioned a threshold of €542,000 in 2009 and, if I am correct, the rate then was still at 20%. There has been a huge change during the downturn in recent years. I note rather cynically that were one to encounter a speeding fine back at the height of the Celtic tiger, it was €80. It still is €80 and Members have never sought to reduce that fine. Taxation should be upfront and should be on the wealth one creates, not the wealth one accumulates, because it does not encourage people to invest in a country if it has such penal rates of taxation on something one has created and one wishes to pass on to one's family.

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