Letters

Capital acquisitions tax threshold

A disruptive impact on Irish families

Mon Sept 19 2022 - 00:10

Sir, – Deep concern should prevail regarding the soundness of a number of proposals made in the Report of the Commission on Taxation and Welfare (“Money to run State in years ahead must come from somewhere, says tax commission chair”, News, September 17th).

Of major upset is the proposal indicating that the capital acquisitions tax Group A threshold (set currently at €335,000, applying to a child of a parent leaving property) should be brought “closer” over time to the Group B (€32,500, applying to a grandchild left inheritance) and Group C (€16,250, applying to a cousin or a non-relative left inheritance) categories.

There is a huge precipitant difference between Category A and the other categories, which if fully implemented would have a severe and enduring disruptive impact on Irish families. Throughout the report, there is a heavy emphasis on “redistribution” and in the case of the recommendation on capital acquisitions tax, this sentiment borders on being an example of bona fide Marxism which is rare to see in such a commissioned report.

Other oddities include the recommendation to replace commercial rates with companies paying a site value tax instead (with the goal being to extract more revenues) as well as the proposal to substantially increase revenues from property tax. These proposals made in the context of Government finances sustainability seem absurd because commercial rates and property taxes are paid in full to local authorities, not the Government. It also goes without saying that these proposals (in addition to the inheritance tax proposals) would likely be exceptionally detrimental to Dún Laoghaire-Rathdown in particular. – Yours, etc,

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Cllr JOHN KENNEDY,

(Fine Gael),

Dún Laoghaire

Rathdown County

Council Offices,

Dún Laoghaire,

Co Dublin.