Houses worth less than €335,000 are currently exempt from capital gains tax also know as inheritance tax
It is unearned income and contributes to the continuation of inequality in society.I see another article today
Explainer: Why Leo Varadkar is pushing to abolish inheritance tax
OUTGOING Taoiseach Leo Varadkar put the cat among pigeons when he said that inheritance tax should be abolished for anyone inheriting an average-priced home.www.independent.ie
What is the objection to reduction in inheritance tax?
It is unearned income and contributes to the continuation of inequality in society.
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!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.
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.What is the objection to reduction in inheritance tax?
Good point, that was a poor choice or term. I meant people that are not the super wealthy.But the average punter isn't paying any inheritance tax at all from an estate that contains their parents' house.
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.A good tax is one with a wide base and low rate.
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.
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.If being inside the top 5% of home-owners does not make you wealthy then who is wealthy?
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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