No, you’re wrong. The LPT evolved from the Household Charge which was introduced to contribute towards local services.
Odd that a political piece is subscriber only. Not even on SocDem website. Great communication there Catherine
Which was introduced to plug a hole in the Govt’s budget during the crash. At short notice.
Just another tax with a different name
But property tax is completely different from income tax. It has been fatally undermined by the failure to allow it keep pace with property price inflation. But when used properly, it is a progressive and useful tax.
Of course it’s different. But as mentioned previously, they only brought in property taxes because they couldn’t take any more on income tax after having introduced the likes of USC.
No you’re wrong. There was never a rationale for ‘better’ public services.
Noonan announced to the Dàil that he preferred a property tax to another tax on employment. It was also made quite clear at the time that LPT proceeds would reduce Exchequer grants to local authorities one for one. Please browse the debates in December 2012 if in doubt.
Actually you’re right in so much that Fine Gael was trying to wind back the progressive taxation system and transfer general taxation on to the ‘consumer’ of local services, but the Household Charge and LPT were intended to support local services. Whether the intention of restructuring the taxation system was to actually create ‘better’ local services or to wind them down by starving them of funds is a very valid debate.
Where I live a private developer had to reallign a road recently for a private development. 2 roundabouts, and a water drain. Took about 6 weeks. The council meanwhile are doing a similar job on the other side of town and have been at it for 2 years and no sign of finishing yet.
Pumping money into councils seems to be just a complete waste. They will find ways of spending it with the least benefit to the end user.
LPT is a wealth tax - irish socialist have forgotten that the most vunerable in society do not own property and are not subject to this tax. LPT is also a highly progressive tax - the more valuable your asset, the greater the liability.
Yes some people have a small income relative to their wealth (aka “the elderly”) but this should not exempt them.
Seriously, it was part of the bailout conditions signed up to by FF and implement further by FG
Quick fix on taxation at time designed to close the deficit and move away from boom bust Stamp duty
Surprised your buying government spin these days
Exactly. It also taxes the unearned rise in the value of a property, and mitigates, to an extent, property price rises generally. It should also be less subject to the vagaries of the economy, thus providing more consistent local govt (or exchequer) funding.
also means that cash in hand tradesmen have to pay some tax!
The tax was imposed by the Troika. The rate initially suggested by them was of the order of 1%. After haggling Noonan got it down to 0.5% and then when it was implemented it was at 0.35% - currently the rate is even lower. The Troika were apparently furious at this further dilution - mainly because they were going to take the hit for the higher level of austerity imposed as a result of this move to protect the propertied class.
It also provided Noonan with a classic ‘Hey … look over there’ moment when he turned down (with the UK) the option to impose a financial transaction tax. This was Noonans most destructive moment and the complicity of those (who kid themselves on being) on the Left who did nothing while they shouted loudly in defence of the propertied classes is equally disgraceful. This tax could still be imposed and most of Europe (well all of Europe when the UK is gone) would support us doing so - but no political party seems able to raise this one - it could have wiped out our debt by this stage.
I would be happy to see it double - use the addition to fund proper local services.
It is not a progressive tax, it is a *flat tax on wealth. It is the same percentage of the value of the house at all levels of price!
Progressivity is when you pay not just more in absolute terms, but in percentage terms too, as your income or wealth increases.
*Technically 0.25% of the excess over €1 million of all properties worth more than €1 million, but this impacts a tiny proportion of properties.
Personally I get cynical when I see the Dublin local authorities spending nearly €3 million a week on ‘emergency’ homeless services.
This is true. It does only apply to the property owning class and at least its not a tax on productivity. Only in Ireland “socialists” against property taxes.
Services provided generally for the benefit if those who are not productive…
Parks for teenage stray dogs to loiter in
Libraries open durin day time hours only for those with spare time
Footpaths to out of town estates granted planning permission in places that should never have been zoned in the first pkace
Sellers beware: stealth-tax bill on homes could cost thousands - -> independent.ie/business/per … 70183.html