1% tax on net wealth of the top 1% could yield €1 billion
3% would raise around €2.5 billion
Oxfam Ireland today publishes a groundbreaking report on wealth inequality in Ireland, revealing stark disparities and proposing bold measures to tackle them.
A new report from Oxfam Ireland estimates that a 1% tax on net wealth targeting the top 1% of the population, with a high exemption threshold and minimal reliefs, could raise around €1 billion annually for the exchequer. 2% would raise close to €1.7 billion and 3% around €2.5 billion.
The report also finds that the top 10% of households in this country hold half of all wealth, while the top 1% alone controls 13% of total wealth. The research warns that this concentration undermines social cohesion and risks eroding democratic values.
The report also calls on Ireland to take a principled stance in international negotiations on tax justice.
Commissioned by Oxfam Ireland, the report was written by Dr Tom McDonnell, and Ciarán Nugent of the Nevin Economic Research Institute and Sorley McCaughy, Public Affairs consultant.
Ireland faces a looming fiscal crunch. We know we are overly reliant on corporation tax revenue which makes us even more vulnerable to external shocks. A tax on the super-rich would raise much needed revenue to fund public services. A fair wealth tax is not just about revenue: it’s about justice. Irish people need to see that the ultra-wealthy cannot use that wealth to avoid discharging their duty to the state and to the rest of us.
“We know that extremism thrives on inequality. A wealth tax could help social cohesion. The public services it would fund would go some way to tackling the cost-of-living crisis and the housing emergency. I wish to thank the authors for this timely and very important contribution to the public policy debate. Anyone interested in protecting democracy, and indeed our public finances, in Ireland should read it.”
— Jim Clarken, Oxfam Ireland CEO
Dr. Tom McDonnell, co-author said:
“Excessive wealth inequality creates power imbalances in society. Our report argues that there are many arguments in favour of a well-designed tax on net household wealth, from the tax yield to social justice considerations and social solidarity, to potential economic benefits. It is an idea whose time has come.”
— Dr. Tom McDonnell, co-author
Ciarán Nugent, co-author, said:
“What is being proposed here is a very modest tax on net wealth above €3 million which only applies to the top 1% of the wealthiest households in Ireland. It is extremely unlikely that this will impact your finances in any way. In a cost-of-living crisis impacting most households, the revenue collected could however go to any one of a number of services Irish citizens do not enjoy that citizens in other similarly developed European countries do, for example free or next to free childcare.”
— Ciarán Nugent, co-author
Sorley McCaughy, co-author, said:
“Extreme wealth inequality cannot be tackled country by country. The richest people in the world hide their wealth through international structures designed to evade tax, and only coordinated global action can stop that. Ireland should be using its voice at the UN, the EU to push for a meaningful global wealth tax. Doing so would be a concrete expression of Ireland’s commitment to multilateralism and development cooperation and would help countries in the Global South reclaim revenues lost to offshore tax abuse."
Ireland faces a looming fiscal crunch. We know we are overly reliant on corporation tax revenue which makes us even more vulnerable to external shocks. A tax on the super-rich would raise much needed revenue to fund public services. A fair wealth tax is not just about revenue: it’s about justice. Irish people need to see that the ultra-wealthy cannot use that wealth to avoid discharging their duty to the state and to the rest of us.
