Sir, – The proponents of the property tax claim that the state needs a new source of income and that a property tax is therefore very suitable. However this claim is false.
PAYE earners will have to pay any property tax from their net pay after income tax, universal social charge, etc, has been deducted; business people will have to pay it from profits after tax has been paid. So where is the new source of income?
Any property tax will almost certainly be unfair because it is not based on income but on the value of your house. Also, if a PAYE worker is made redundant or a sole trader’s business closed down they will, it appears, still be liable for the property tax. How is this fair?
At least when a PAYE worker at present is made redundant he/she is not liable for income tax as long as they remain unemployed. The same applies to a business person whose business closes down.
It is suggested in the press that there will be a wide range of exemptions from the property tax: for example, people who bought houses during the boom period because of the high stamp duty paid, people who are having difficulty repaying their mortgages, people on social welfare, etc. With all these exemptions the revenue to the State will be greatly reduced.
So this tax will be unfair and ineffective. Why do the politicians persist with it? In my opinion the revenue should come from increased income tax rates with relief for people on low incomes. – Yours, etc,