Sir, – The so-called property tax is a misnomer. For the vast bulk of people who own their own homes, these represent most, if not all, of their wealth. So, in effect, for most people, the property tax would actually be a wealth tax.
For the very rich, however, their home is only a small part of their wealth, which might also include stocks and bonds and other non-property forms of wealth.
So, most people will be taxed on all their wealth, while a few will be taxed only on a small portion of their wealth.
If we must have what is, in effect, a wealth tax for most people, then let us have a debate about it. Or, at the very least, let’s make it fair and tax all wealth and not have, once again, those least well off subsidising those most well off. – Yours, etc,
A chara, – Derek Brady (February 19th), like many others, argues that those who paid stamp duty should not have to pay property tax. Anyone who buys a new home is still subject to pay 13.5 per cent VAT and 1 per cent stamp duty, meaning a tax bill of 14.5 per cent. Should these people be excluded from property tax as well? – Is mise,
Sir, – What a fantastic idea from Sorcha Donohoe (February 16th) who wants her mortgage recalculated to reflect the current value of her property. If only she had had that idea years ago, during the property bubble.
If mortgages had been reviewed annually to reflect the value of the property, repayments would have spiralled upwards every month, our banks really would have been the healthiest in Europe and we would never have got into this mess in the first place! Of course that is assuming that people would welcome such an arrangement and would be willing to share their gains when property values soar and not just their losses when values plunge. But now that I think about it I don’t remember any similar suggestions in your paper back then. – Yours, etc,
Sir, – A civilised state normally exempts citizens of limited means from paying the various direct taxes and charges it imposes; or such citizens pay lesser rates than those who are better off.
For example, if our earnings are below a defined limit we do not pay income tax.
The property tax breaks with this long-established and just tradition.
Those who are deemed to be too poor to pay the tax (ie those with incomes of less than €15,000 gross per annum single, and €25,000 gross per annum married) can defer the tax and pay 4 per cent interest each year on the amount deferred. The accumulated “debt” is paid when the home is sold, or on death, whichever is the sooner.
What kind of state makes poor people pay interest on charges the state itself deems they cannot afford to pay?
Some Government politicians do not seem to understand the difference between “exempt” and “deferred” to judge by their inept performances on the media.
And, one of my local TDs has issued a Budget Guide 2013 claiming that there is a deferral option for “older homeowners”. That is simply not true. Nor does he mention the 4 per cent interest charge on deferrals. I voted for this Government; how I regret it! – Yours, etc,
Sir, – The Revenue Commissioners are to use the Ordnance Survey maps to estimate the value of individual houses. Will they take into account the extension that is shown attached to my house, and the two extension shown on our neighbours house to do the reckoning? If so, they will have overestimated the values of both houses as neither of them has an extension. – Yours, etc,