Thursday, November 11, 2010

Property tax? Who cares?

Tonight’s Late Debate on RTÉ Radio 1 featured the much-touted proposal for a property tax.  I sent them an email which wasn’t read out so here it is.

There's a lack of clarity as to what you are debating tonight.

Is it a property tax? Or is it raising an extra €800 per year on average from each household?

If raising
an extra €800 from each household is a given, then it’s only of marginal interest whether it’s raised by a property tax or another way.

Were the overall tax take to remain static, then the debate of property tax vs corporation tax (principally), and income tax, VAT, carbon tax. motor tax etc would be a real one.

I have views about a property tax, which in different circumstances I should be happy to share (to satisfy your curiosity, I'm in favour).  But all that’s quite irrelevant. The only relevant fact is that we are being asked to pay more to line the pockets of bond holders. 


  1. Can you clarify a little more your views on this?

  2. As part of a mix of taxes, a tax on fixed property can be useful. It’s cheap and easy to collect and has a progressive element built in, ie the more you have, the more you can afford to pay, and the more you do pay. Except in England where the Council Tax, which is a property tax, has a maximum cut-off, which lets the multi-millionaires off too lightly.