Wealth tax on richest would hit 1.5% of households
A study by the ESRI and the Department of Finance suggests that a wealth tax would only affect 1.5% of households if limited to the wealthiest. The report warns that excluding assets like primary residences or farms would significantly reduce potential tax revenue.
Why it matters
The findings provide critical data for policymakers debating wealth redistribution and fiscal policy in Ireland.
Limiting a wealth tax to the very richest in society would only capture 1.5% of households, according to a paper by the Economic and Social Research Institute and the Department of Finance.
The study is a hypothetical exercise carried out on the basis of 1% wealth tax.
While Sinn Féin has consistently advocated for a wealth tax, the current coalition of Fianna Fáil, Fine Gael and Independents have not included proposals for the levy in the Programme for Government.
The study, funded by the Department of Finance, found the largest tax take would be achieved by "extending liability beyond the wealthiest households and into a much broader proportion of the household population."
The study said revenue from the tax would decline if the main residence was exempted, because the liability for a wealth tax becomes concentrated among households with more diversified holdings.
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