Politics

AAA-PBP want landlord tax to replace property tax

Group’s pre-budget measures include swapping USC for a High Income Social Charge

People Before Profit TDs Richard Boyd Barrett and Bríd Smith at the launch of the Anti-Austerity Alliance-People Before Profit’s pre-budget statement. Photograph: Dara Mac Dónaill
People Before Profit TDs Richard Boyd Barrett and Bríd Smith at the launch of the Anti-Austerity Alliance-People Before Profit’s pre-budget statement. Photograph: Dara Mac Dónaill
Sarah Bardon
Tue Oct 11 2016 - 01:00

The Anti-Austerity Alliance-People Before Profit (AAA-PBP) has proposed the introduction of a landlord’s tax to replace the local property tax.

The group announced its pre-budget measures on Monday including the abolition of water charges and the Universal Social Charge (USC).

The money would be replaced with a so-called millionaire’s tax on assets over €1 million and closing tax loopholes.

People Before Profit TD Richard Boyd Barrett claimed big corporations and vulture funds have exposed Ireland as an off-shore tax haven.

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He also said he believed €4 billion could be raised by closing loopholes and by increasing rates of corporation tax.

He said: “The basic economic model of the Irish establishment has been to attract foreign direct investment by holding down wages and public spending and allowing an elite of corporations to pay little or no tax.

‘Unsustainable model’

“Within the EU, Ireland relied heavily on London to block any moves against multinational tax evasion. In the aftermath of Brexit, with the noose being tightened around corporate evasion and a very troubled global economy, this is a totally unsustainable economic model,” he said.

The group is proposing landlords pay a new levy on their non-principal properties, of €600 on a person’s second property and €1,000 on subsequent properties. This would replace the property tax.

Their pre-budget submission also advocates for €4.5 billion to build 50,000 homes, €3 billion on healthcare in 2017 and investing €2 billion in a public childcare service.

The group is seeking to reverse the cuts to jobseeker’s allowance for young people; reintroduce the telephone allowance; restore the fuel allowance by extending the season by six weeks; increase social welfare rates by €16 a week to €204 and restore the basic rate of child benefit to €166.

Anti-Austerity Alliance TD Ruth Coppinger said an additional €1 billion would be provided for education including free school books, an end to voluntary contributions and an end to third-level fees.

She said this would be paid for through a new social charge on incomes over €90,000 and increasing the marginal rates of tax of those earning over €100,000.