Gerald Nash (Louth, Labour)
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100. To ask the Minister for Finance if, in light of a report (details supplied) detailing that Ireland’s richest 1% control a quarter of the country’s wealth, he will review the Government’s approach to taxes on wealth as suggested in the Labour Party’s alternative budget; and if he will make a statement on the matter. [3085/23]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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122. To ask the Minister for Finance if his attention has been drawn to the recent call by an organisation (details supplied) for a wealth tax of graduated rates of 2%, 3% and 5% on wealth above €4.7m, in which the organisation stated that such a wealth tax would raise €8.2 billion annually, with the potential to transform Irish public services in health, housing and education; and if he will make a statement on the matter. [3107/23]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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161. To ask the Minister for Finance if he will re-examine the proposal for a wealth tax in Ireland in light of a recent export on wealth and inequality; and if he will make a statement on the matter. [3105/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 100, 122 and 161 together.

I am aware that Oxfam International recently (on January 16^th 2023) produced a new report regarding global wealth inequality entitled “Survival of the Richest” which proposes new wealth taxes in Ireland and other jurisdictions.

While I understand the background to calls for a specific wealth tax in Ireland, it is not the case that wealth in Ireland is untaxed, as taxes on wealth are already in place here.

The Oxfam’s report notes:

- “Two-thirds of countries do not have any form of inheritance tax on wealth and assets passed to direct descendants.”Ireland has a significant inheritance tax regime in place in the form of Capital Acquisitions Tax which is charged (with limited exemptions) at a rate of 33%.

- “Rates of tax on capital gains – in most countries the most important source of income for the top 1% – are only 18% on average across more than 100 countries.” Capital Gains Tax is in place in Ireland and it is charged (again with limited exemptions) at a rate of 33% which is well above the 18% average reported by Oxfam.

The Government is committed to creating a fairer, more equal Ireland. While the calls for a specific wealth tax are understandable, there are already a number of wealth taxes in place including Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Revenue estimates that these taxes raised over €2.8 billion last year.

Any revenue raised from a new wealth tax may not therefore be additional to the existing forms of wealth taxation, as revenues from those taxes could be affected by the introduction of such a new tax.

In addition to wealth taxes, the Government takes action against inequality through our tax and welfare system. For instance, the strong redistributive role of the Irish tax and welfare system is evident in the range of supports introduced to help mitigate the impact of the Covid-19 pandemic and the current cost of living pressures on vulnerable households and businesses. The overall distributional impact of Budget 2023 was strongly progressive, with the lowest three deciles experiencing the highest gains as a proportion of disposable income.

Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.

It is estimated that the top 1 per cent of income earners, those earning in excess of €263,000 will pay 23 per cent of the total income tax and USC collected in 2023. While those earning less than €65,000 which represents the bottom 80 per cent of income earners, will contribute only 21 per cent of total income tax and USC receipts.

In conclusion, I can assure you that all taxes and potential taxation options are kept under constant consideration and it remains a priority of mine to ensure that Ireland maintains its progressive taxation system.