Sunday Independent writing rubbish about CAT

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Mrs Vimes

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How does such rubbish get published?

Houses worth less than €335,000 are currently exempt from capital gains tax also know as inheritance tax
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So, I can inherit a house from a random stranger and not pay Capital Gains Tax - correct, but I don't think that's what he's saying.

I don't disagree with the idea that the Group A be linked somewhat to average property prices, but surely that would imply an average child should inherit an average house? How many one child families are there in Ireland?

I really should have more sense than to go to that tabloid :rolleyes::rolleyes:
 
The average dwelling in Ireland is about €220k.

Average family size in receipt of a bequest is three.

A €75k allowance would leave the "average" home inheritance free of tax.

I have never seen these pretty basic stats laid out in the Irish media.
 
I suspect many parties would object to any cut to CAT: PBP, SF, Labour, Greens, etc.


SF suggest that CAT be increased from 33% to 36%.
 
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dereko1969 said:
It is unearned income and contributes to the continuation of inequality in society.
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I get a bonus.

The State gets 52% of it.

I’m left with 48% of it.

I give the 48% to my son.

The State takes 1/3 of that, so another 16% is snaffled.

He then takes the 32% and buys something, 23% of which is VAT, so the State gets another 6%.

I made the 100%, but the State got 74% and the Gekko family got 26%.

The State then takes the 74% and wastes a hell of a lot of it.

How is the above ‘fair’?

Yet the Left spend their time moaning about people like me not paying their fair share! “Congrats Gordon...here’s your bonus!” In reality, it’s Pascal Donohue who’s getting the lion’s share.
 
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"Gordon" I'm sure you'd find a cleverer way of having the money benefit your son! Plus we're talking about Inheritance Tax not gift Tax, there's a difference.
 
Gordon Gekko said:
I get a bonus.

The State gets 52% of it.

I’m left with 48% of it.

I give the 48% to my son.

The State takes 1/3 of that, so another 16% is snaffled.

He then takes the 32% and buys something, 23% of which is VAT, so the State gets another 6%.

I made the 100%, but the State got 74% and the Gekko family got 26%.

The State then takes the 74% and wastes a hell of a lot of it.

How is the above ‘fair’?

Yet the Left spend their time moaning about people like me not paying their fair share! “Congrats Gordon...here’s your bonus!” In reality, it’s Pascal Donohue who’s getting the lion’s share.
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Gordon, given my guesstimate of your bonus I would reckon that Gordon Jr. would be buying a high end car. 36% VRT. Government get 87% of your bonus - proper order!
 
moneymakeover said:
What is the objection to reduction in inheritance tax?
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The purpose of an inheritance tax is to reduce the effects of generational wealth, which I'd guess most would agree is pretty unhealthy for society. So the objection is that by reducing it, you're allowing the wealthy keep more money in their families and all the risks that entails. Personally though I don't think it serves this purpose well; even unsophisticated business people know to start companies in their childrens' names so there is no liability to inheritance tax when they pass away, we can only imagine how a sophisticated team working for a very wealthy person might find ways to work around it.

So personally I'd like to see the rate of inheritance tax increased but also the threshold increased significantly (maybe €1m?). That way the average punter isn't paying a tax aimed at the very weathly, while the very wealthy are mostly avoiding it.
 
@Zenith63

But the average punter isn't paying any inheritance tax at all from an estate that contains their parents' house.

A good tax is one with a wide base and low rate. I would have a threshold of maybe €30k per child and then 25% tax after that.
 
NoRegretsCoyote said:
But the average punter isn't paying any inheritance tax at all from an estate that contains their parents' house.
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Good point, that was a poor choice or term. I meant people that are not the super wealthy.


NoRegretsCoyote said:
A good tax is one with a wide base and low rate.
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That is undoubtedly true of a tax designed to generate revenue, but it does not seem particularly relevant where a tax is being implemented to encourage or discourage certain behaviours in a small number of individuals.
 
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So do you believe we should also remove the inheritance of a social housing tenancy?
 
Some very valid points made there. We do need to move away from the idea that someone with €1m worth of assets is ‘wealthy’. That’s the Sinn Fein/IRA or PPP narrative. They’re not. A nurse or a teacher with a €25k defined benefit pension is just as ‘wealthy’.

The problem with a lot of this is that it’s the middle class people in Dublin and other cities that wear most of this stuff. People are able to trot out stats about the average house price in Ireland being €200k when it’s €400k in Dublin and €600k for anything half decent in a half decent area.
 
Gordon Gekko said:
The problem with a lot of this is that it’s the middle class people in Dublin and other cities that wear most of this stuff. People are able to trot out stats about the average house price in Ireland being €200k when it’s €400k in Dublin and €600k for anything half decent in a half decent area.
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95% of dwellings sold for less than €600k in 2019.

If being inside the top 5% of home-owners does not make you wealthy then who is wealthy?
 
NoRegretsCoyote said:
If being inside the top 5% of home-owners does not make you wealthy then who is wealthy?
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For the purposes of a tax designed specifically to tackle generational wealth, you’re talking the top 0.1% at most. The idea is not to prevent people being wealthy, just prevent it getting to the excesses that threaten society/democracy.
 
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NoRegretsCoyote said:
95% of dwellings sold for less than €600k in 2019.

If being inside the top 5% of home-owners does not make you wealthy then who is wealthy?
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So you think that a couple on €137k combined are ‘wealthy’?

€137k x 3.5 plus 20% deposit gets you to €600k.
 
Are we talking income or wealth? They are not the same.

Anyway the median net income for a two-adult household under 65 is €50k according to CSO. For dual-earning couples €137k gross is about 90th percentile for all dual-income couples as per Revenue statistics.

What you choose to describe as 'wealthy' is a value judgement. Most people mix with people very like them and this skews their perception of what average is.

I am just bringing some actual statistics on averages and distributions to the discussion.
 
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