Sir, We learned again last week from the CSO’s Income and Living Standards Survey that the poverty rate continues to fall, the at-risk-of-poverty rate continues to fall, and the median disposable income of households increases. Taxes on employment, especially very high taxes on high earners, combine with our welfare system to provide the most redistributive benefits in the EU. A high earner in Ireland with a gross income of €150,000 pays around €6,000 more in tax per year than a worker in Britain or Northern Ireland with the same salary and over €25,000 more taxes than a worker in the United States.
But Sinn Féin intends to target Irish high earners even more, private capital must be taxed and employers will also be hit with even higher taxation. Current wealth taxes in Ireland include gift tax, inheritance tax, local property tax and capital gains tax.
Sinn Féin, People Before Profit and others want to introduce a tax on private capital itself, not just capital gains, through a so-called wealth tax.
Sinn Féin says it can put more taxes on high earners and private wealth and the result will be more money in state coffers. The assumption is that employees of multinationals, for example, are willing to stay here when their personal tax credits are reduced or eliminated.
It is also assumed that those earning more than €140,000 will be willing to accept a new 3% “solidarity tax”.
Is it realistic to assume that economic activity and tax revenue would not be negatively affected by these new left-wing taxes and that one of the most globalized countries in the world, benefiting enormously from high levels of employment, taxation and spending of multinationals, won’t be negatively affected? – Yours, etc.,