Alice-Mary Higgins (Independent) | Oireachtas source

I move recommendation No. 6:

In page 66, between lines 8 and 9, to insert the following:

“Report on wealth tax

25.The Minister shall, within six months of the passing of this Act, lay before both Houses of the Oireachtas a report on the potential revenue raised from, and

distributional impact of, a wealth tax of 1 per cent on all households with assets of over 10 million euro.”.

We have been hearing many warnings about the precariousness of the sustainability of the bumper corporate tax intakes we have had for the past number of fiscal years and the need to widen the tax base. I am concerned that much of the narrative in the media has been around increasing the targeting of lower income households in respect of tax increases. One of the topics which is coming up again and again, but is never properly examined or surveyed, and is something which must be considered, is exploring again the question of wealth taxes.

The amount of wealth inequality in Ireland is extraordinarily high. Statistics from the Central Bank show stark differences between the wealth of the lowest income deciles compared to the highest income deciles and, before tax and transfers, we have one of the highest levels of income inequality in the OECD.

This amendment focuses on wealth inequality. From recent figures, and I am being cautious, I am talking about wealth of more than €10 million. I will be honest and say that I considered having this figure at €1 million, which should be considered, but I was bearing in mind issues such as the family home, and so forth, in that context.

We are fifth in the world in respect of billionaires per capita, of which we have 17. We have those who have extreme wealth, and we know from research by Oxfam and others that wealth inequality globally is shifting enormously. We are seeing a trickle-up effect, which is a pooling of wealth at the top. Even going into the middle category, if we are talking about those with wealth of more than €10 million, even a 1% wealth tax could make a significant difference.

It is difficult to get figures on wealth. If there is a small number of people with a great deal of wealth, they do not necessarily rush to answer surveys in respect of their wealth, so we have put the figures together in this way. One of the figures we have from last year is that the wealthiest 10% of the population were estimated to have a net wealth in excess of €788,000 after-tax, whereas the bottom 10% of the population were estimated to have net wealth of less than €600. There is, therefore, a huge portion of people in Ireland who have no safety net and no wealth.

Again, the figures are very stark in respect of those who own a home and have a certain level of wealth, but for renters the level of wealth they have in Ireland - many people in Ireland are renters - is minimal. Even at times when we were not measuring wealth properly here, one way in which we have been measuring it is through measuring the absence of wealth through the deprivation index. It is very notable, for example, that the deprivation index has constantly shown that lone parent families are the most at risk of homelessness and of poverty. That is, lone parent families without wealth. We have a situation in Ireland, therefore, where we have a very significant portion of the population who do not have a safety net of wealth and having wealth and assets is worth something.

My amendment is modest. I know there have been proposals in the past for a wealth tax on all those with wealth and assets of more than €1 million and there is a very strong case for that. I tried, however, in an almost incremental approach, to suggest that we would begin by examining at least a 1% wealth tax on those with wealth and assets of more than €10 million. That is a very reasonable place to begin and it would show a gesture against a quite dangerous international tide of wealth inequality.

I know the Minister is familiar with Thomas Picketty, and all of the rest, and the move into capital and away from solely looking at income taxation measures. We need to examine measures in respect of wealth tax in that regard. The Minister will be also aware that I have supported other forms of wealth tax in that regard.However, in addressing assets and doing so in the wider sense, what I propose is important if we are to ensure we do not slide towards further inequality. I am simply calling for a report examining the impact and the potential revenue raised. The revenue that might be raised could, I hope, be used redistributively to raise the bottom 10%, as well as to ensure that those who can contribute, contribute more.