Paschal Mooney (Fianna Fail) | Oireachtas source

The history of the increases and decreases in capital gains tax rates dates back to when Albert Reynolds was the Minister for Finance. He introduced what was seen at the time as a very radical reduction in the capital gains tax rate, against the advice of the Department of Finance. He argued at the time that a great deal of capital had been locked up and that reducing the capital gains tax rate unlocked this capital, stimulated investment and generated more income than was the case under the status quo. Has the Department carried out any analysis of what would be derived from increasing the tax or returning it to where it was at 40%? What are the views of the Department on increasing capital gains tax, particularly in the context of a depressed economy?