Irish Examiner view: Wealth trickling down

Almost two-thirds of the wealthiest 20% of households have received an inheritance or gift, while this falls to just 16% of the poorest group.

A new report from the Central Statistical Office concludes that inheritances in Ireland average close to €100,000 and are the key way in which wealth is passed between generations. Some 36% of households receive a benefit at some time, according to the CSO.

While this is testimony to the planning and financial discipline of many in the older generation, there are wide discrepancies and significant trends. Almost two-thirds of the wealthiest 20% of households have received an inheritance or gift, while this falls to just 16% of the poorest group. The existing net wealth of households which had received an inheritance was €334,100, compared to €133,100 for those who had not.

The rich getting richer, and the fiscal implications of capital gains, is one of the matters which keep those who spend their time worrying about tax policy awake at night. As other forms of taxation dwindle, covetous eyes will be cast in that direction. It will take a brave political leader, with a strong majority, to tackle that elephant in the room.