Wealth Tax Evaluated for Ireland
November 25, 2016 Taxation in Ireland
In a report released earlier this week researchers from the Economic and Social Research Institute of Ireland attempted to ascertain the potential revenues which may be raised from the imposition of a tax on household wealth in the country.
The researchers did not propose any particular set of parameters for the wealth tax, and, instead, opted to examine the impact that already implemented taxes from around Europe would have in Ireland.
It was found that if the French wealth tax system was transferred to Ireland, it would only result in tax collections of EUR 22 million per year, as it is only applied in cases where an individual has assets valued in excess of EUR 1.45 million.
The Spanish system, which is applied at EUR 900 thousand worth of assets, would result in tax collections of EUR 77 million per year.
The research also found that an extreme application of the tax, as is seen in the Swiss canton of St. Gallen, would result in collections of as much as EUR 1.286 billion.
It was noted that as the threshold for the wealth tax moves downwards, the revenues rise, but the tax would affect an increasing number of people who would not traditionally be classified as wealthy, in some cases even resulting in payments from low-income individuals and households.