Sir, – Until Fianna Fáil abolished domestic rates in 1977, when it won the 1977 general election with a 20-seat majority, it was the responsibility of local authorities to set the “rate”. The rates were not uniform, with Dublin and urban rates usually rated higher than country areas.
For most householders it was a hated tax as it was based on Griffith’s Valuation of property set in the Victorian era. Also, as with the proposed new property tax, it did not take account of the householder’s ability to pay the tax and some farmers simply took the roof off their property to avoid paying the “rates”.
Michael Noonan has given Fianna Fáil a winning general election manifesto: abolish the hated property tax! – Yours, etc,
Sir, – Paul Carroll (February 14th) asserts that the planned property tax is grossly unfair, particularly regarding stamp duty and the liability of owners versus residents.
On both points he is mistaken.
Stamp duty forms part of overall property cost and as such is a tax deducted from the full market value that would be received by the vendor, rather than adding cost for a buyer. Buyers factor in stamp duty and will borrow and pay the same overall amount for property regardless. This is why increases in duty failed to dampen prices during the boom, and why recent buyers should receive no special consideration when considering tax liability.
A property tax is a wealth tax levied on capital assets rather than cash income, and is a key tool of any progressive society that aspires to social equality via wealth re-distribution.
To levy a the tax on residents would simply make it another form of income tax.
A property tax should be applied to owners who stand to gain from income that might be derived by leasing a property. This encourages owners to make profitable use of property, or to sell up and let someone else try. Nothing could be fairer. – Yours, etc,
Sir, – At last the Government and the Revenue Commissioners will calculate the true value of my home.
I will send this on to my mortgage provider who can then duly recalculate my mortgage based on this invaluable information. – Yours, etc,