Property tax is progressive

A property tax is an equitable form of taxation that is progressive and could form an important part of local authority funding, according to Tasc research director, Nat O’Connor.

Sinn Féin and other left- wing parties in the Dáil are opposed to the introduction of the property tax and water charges. “I think it is very problematic for those parties,” said Mr O’Connor, speaking at the think tank’s pre-budget submission.

These parties would have to figure out how they are going to replace the funding, he added.

Moreover, property tax has characteristics of a wealth tax that is a “potential cornerstone of local authority funding,” he said.

Tasc called on the Government to tackle growing inequality in this budget. It proposes a series of measures to raise the overall level of taxation, including a 48% tax rate on incomes above €100,000, pensions-related tax reforms, and abolition of health insurance tax relief.

Overall, Tasc proposes €3bn in revenue-raising measures and €1.35bn in costs, including lowering the Vat rate by 1% and changes to the PRSI system, as well as €615m in increased expenditure.