A chara,– So Fine Gael plans to scrap inheritance tax for "thousands of people" (Front Page, May 13th).
The argument against inheritance tax is usually that tax was already paid on the income prior to the purchase of the house. That is reasonable if the price of the house did not change.
However, a house worth over €500,000 (the suggested limit before inheritance is paid) may have only cost the parents €5,000 when they purchased it in the 1960s or 1970s. No-one paid tax on the €495,000 that came from the magic market.
A tax system that favours money made without working only benefits those who can derive money without working. It does nothing to stimulate the economy, create jobs or, dare I say it, tackle wealth distribution. – Is mise,
ALEX STAVELEY,
Donabate,
Co Dublin.
Sir, – At a time when large numbers of Irish patients are expected to wait over 24 hours for treatment at hospital emergency departments, when we are told the water infrastructure requires huge investment to tackle decades of neglect, when we have an unprecedented number of families homeless or living in inadequate accommodation, the Government has found £75 million per year to ensure those lucky enough to inherit large sums of money are not required to pay any tax on it.
Ordinary people earning relatively modest incomes by working are expected to pay tax at the nominal rates, whereas those who have done nothing to earn these large sums are exempted from paying any tax whatsoever. It is widely accepted that unearned wealth derived from inheritance is the primary driver of inequality in western societies, yet instead of tackling this gross inequity through taxation, we do the opposite and subsidise it.
I wonder has it anything to do with the recent torrent of complaints from well-heeled Dubliners objecting to the Government’s retreat on water charges. – Yours, etc,
CIAN CARLIN,
London.