Michael McGrath (Cork South Central, Fianna Fail)
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I am aware of the Deputy's interest in wealth taxes and the periodic reports published by Oxfam which discuss that concept.

The most recent report by Oxfam International regarding global wealth inequality was produced in January this year. That report, entitled “Survival of the Richest”, proposes new wealth taxes in Ireland and in 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 including Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Revenue estimates that these taxes raised over €2.8 billion last year.

The Oxfam report notes that many countries do not have any form of tax on inheritance. As the Deputy is aware, 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%.

Oxfam's report also notes that “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.” In contrast to the 18% average cited in the report Ireland taxes capital gains at a rate of 33%, again with limited and targeted exemptions.

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 series measures designed to limit the impact of the cost of living pressures.

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 21 per cent of total income tax and USC receipts.

In conclusion, I can assure the Deputy 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.