Why does Ireland need a wealth tax on the super-rich?

Billionaire wealth translates into political influence: billionaires are using their money to buy politics, media and elections. Shockingly, billionaires are 4,000 times more likely to hold political office than ordinary people. It is one thing to buy a private jet or a big house, it is another thing altogether to buy a politician, a newspaper, or a judge.  How can that be fair? 

Extreme wealth concentration does not merely represent an economic imbalance, it represents a democratic risk. Media ownership, political influence, lobbying power: wealth buys access, voice and advantage. When extreme wealth is allowed to grow unchecked, the system tilts. 

When people see a small elite prosper while public services crumble, trust in institutions falls. Space opens for extremism and division. We are witnessing versions of this polarisation across Europe and globally, and Ireland is not immune.  

The inequality in our country is also alarming. While ordinary families struggle with soaring rents and a deepening housing crisis in Ireland, the richest continue to accumulate fortunes. 

Corporate giants, many headquartered in Ireland, also benefit from tax loopholes that deprive governments worldwide of billions in revenue needed for healthcare, education and climate action. 

Today, the top 10% of Irish households hold half of all wealth in this country, and the top 1% alone control 13%. 

Ireland’s 11 billionaires are wealthier than 3.5 million Irish people combined. In the space of just a single working day, the average Irish billionaire will make the equivalent of an average person’s entire annual income. 

These shocking disparities did not arise overnight. They have deepened steadily over years as wealth accumulates at the top and our tax system struggles to keep pace with a changing economy.  

Unless we take immediate action, inequality will only get worse. 

Inequality is the unequal and unfair distribution of resources, opportunities, and power that shapes the quality of all of our lives. 

There are many different forms of inequality (economic, gender, race, class, health, sexuality, and more). When put together (intersecting), they can result in people experiencing greater levels of inequality. 

A wealth tax is a tax on the total value of a person's assets over a certain amount set by the government. Assets can include cash, property or land, stocks, businesses, valuable possessions, and other forms of wealth. 

The purpose of this type of tax is to generate revenue and address wealth inequality. Wealth taxes typically only affect people whose assets exceed the specified limit. This ensures it targets only the wealthiest members of society. 

Oxfam Ireland has commissioned a new report 'Confronting Wealth Inequality in Ireland’ which sets out workable proposals for a new wealth tax in Ireland. The report is authored by leading economists Dr Tom McDonnell and Ciarán Nugent of the Nevin Economic Research Institute, alongside public affairs expert Sorley McCaughey. The research shows the scale of the challenge, but also a clear and achievable solution.

No. We’re calling for a wealth tax only on the super-rich in Ireland.  

We are not proposing a tax on middle income households, farmers, small businesses or anyone struggling with the cost of living. 

The Oxfam Ireland-commissioned report includesd a proposal for a tax on the top 1% of individuals with household net wealth of over €3 million. That’s approximately just 43,000 individuals in Irelan

The proposal is for a simple, modest, highly targeted tax on the top 1% of wealth holders in this country. So, you’d only be affected by the tax if you’re worth more than around €3 million. This means that 99% of people in Ireland would not pay this tax.

A modest 1% tax on the net wealth of the top 1% in Ireland could raise €1 billion every single year for the Irish exchequer. This €1 billion could be used to strengthen our public services, reduce inequality, and shore up our democracy against the pressures that inequality fuels.  

Consider what €1 billion per year could contribute towards: 

• Universal or near-free childcare
• Affordable public housing
• Healthcare capacity, reducing waiting lists and expanding mental health services
• Climate transition investment, making communities safer and energy bills lower
• Education and apprenticeships 

These benefits would be felt by ordinary households - the people currently squeezed hardest by rising costs, high rents and strained services. 

A higher 2% or 3% rate, which is still modest by any international standard, would raise even more: €1.7 billion and €2.5 billion, respectively. An extra €1 - €2.5 billion for the public purse is not an insignificant sum. 

Overall, a fair, well-designed wealth tax could help fight inequality and rebalance the scales. Not just to raise revenue, but to signal clearly that the wealthiest should contribute fairly to the society from which they benefit enormously.  

This is about justice and long-term stability, and trust in democracy itself. 
 

Some billionaires may have worked hard for their wealth, but the majority - 60% of global billionaire wealth, is inherited or gained via connections or monopolistic sources. 1% of the richest in the Global North extracted €29m an hour from the Global South through the financial system in 2023. 

In previous reports, Oxfam has shown the reality of modern-day colonialism in action with countries in the global north extracting billions from the global south and holding on to a vastly disproportionate political power. 

Wealth itself is not the problem.   

Wealth can be productive, innovative and socially beneficial. However, when vast wealth held by a tiny minority sits alongside housing insecurity, growing inequality and a tax system increasingly reliant on a small handful of corporations, we have a structural problem. 

Our campaign asks only the very richest to contribute a little more, in a system that already disproportionately benefits them. 

This is not radical. It is merely common sense.

Not likely – the experience of other countries shows that very few wealthy people leave when a wealth tax is introduced. While assets are mobile, research shows that migration responses to wealth taxes are small relative to the potential revenue. In France, only 0.23% of taxpayers subject to France’s Wealth Solidarity Tax in 2014 left the country. In Spain, between 2011 and 2022, the number of tax returns has increased by 77% while the revenue collected has more than doubled.  

To safeguard our tax base, we propose setting the tax at a low effective rate and introducing a robust Exit Tax to prevent high-net-worth individuals from simply relocating to avoid their duties. 

So, the risk of our economy being negatively impacted is extremely low, and in fact, introducing a wealth tax makes prudent sense to help protect our economy. Consider the fact that Ireland is dangerously over-reliant on a handful of corporations for our tax base. This makes us very vulnerable to external shocks. A tax on the super-rich would raise much needed revenue to fund public services.  

Meanwhile, the impact on the ultrawealthy would be extremely limited, particularly relative to the gains society would make. 

The wealthiest 1% can afford to contribute an extra 1%.  Ireland cannot afford for them not to. 

Critics argue that wealth is built from income already taxed. However, all consumption taxes (like VAT) are paid out of already taxed income.  

A wealth tax is better understood as a surtax reflecting the "additional taxable capacity" and unique utility—security, power, and influence—that comes with owning vast assets.

Unlike past systems, our proposal learns from international best practice and avoids the traps that caused some countries to abandon earlier models.  

Modern technology and increased international cooperation have made valuing assets easier than ever. By utilising self-assessment with random audits and setting a high threshold of €3 million, we restrict the tax to a tiny, wealthy elite (approximately 43,000 individuals), thereby minimising compliance costs for the state and the general public. 

Our proposal is workable, feasible and realistic. Other countries like Spain, Norway and Switzerland have done this, and so can we. 

Today, despite record levels of private wealth, Ireland barely taxes wealth at all. Our system relies heavily on labour and consumption, while wealth (particularly the wealth of the very richest) remains comparatively undertaxed. 

This imbalance isn’t just fiscally unsound: it’s unjust and eroding global democracy. 

However, there is growing momentum towards introducing a wealth tax in Ireland. The 2022 Commission on Taxation and Welfare was unequivocal: Ireland must broaden its tax base, including through the taxation of wealth and capital. 

Ahead of the last general election in 2024, a number of opposition political parties also included pledges to introduce a wealth tax in their manifestos. 

Momentum is growing, but we need more pressure on our government to support a wealth tax. This is where you come in – if enough of us demand action, and put pressure on our political representatives, we can use people power to get the government to support a wealth tax.