Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the Deputy for bringing this recently published paper on wealth taxation by Emmanuel Saez and Gabriel Zucman to the attention of the Department of Finance. The paper is being reviewed but, in summary, it describes the historical experience of wealth taxation in Europe and draws lessons from this. It concludes that the wealth tax base was narrow in European countries due to large exemptions, tax avoidance and evasion. The paper explains why such exemptions were granted and how the authors contend they undermined European wealth taxes. The paper examines the issue from an EU-wide lens, with some discussion of specific countries, but it does not refer to Ireland. It is important that we mention the context that it is a European report that does not specifically refer to Ireland. I acknowledge that the Deputy has highlighted that and the paper is being examined.

While the Government understands the background to calls for a specific wealth tax in Ireland, it is important for people listening to note that contrary to the general impression given by some of those calling for such a tax, it is not the case that a wealth tax does not exist in Ireland. Ireland's wealth is taxed and taxes on wealth are in place. These wealth taxes include capital gains tax, which is significant, and most people who buy or sell houses or property will be aware of that. It also includes capital acquisitions tax and the local property tax and between them, according to Revenue’s annual report for 2021, those taxes raised €2.77 billion net last year.

The biggest wealth in Ireland is the value of people's households. We have a wealth tax on that, notwithstanding some parties of the left opposing that. Any revenue raised from a new wealth tax may not, therefore, be additional to the existing forms of wealth tax, as revenues from the latter could be affected by the introduction of new taxes.

On the broader issue of inequality, it is important to note that the taxation system in Ireland is deemed generally progressive by most independent observers.

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