The problem with a rich tax? There's not enough rich people

The problem with a rich tax? There's not enough rich people


 
It’s edifying to think that a wealth tax or a solidarity tax on the super-rich could raise revenue for investment in public services. But it won’t. A study by the Economic and Social Research Institute (ESRI) back in 2016 estimated that imposing a French-style wealth tax – applied to assets exceeding €1.45 million – on Ireland’s financial elite would net the exchequer here a paltry €22 million per annum. Adopting a Swiss-style wealth tax, however, could generate €1.3 billion in additional revenue, the ESRI found. But there’s a sting in the tail. The burden of Swiss wealth taxes, which differ depending on the canton, fall on low and middle-income earners as well as the very wealthy. In the Swiss region of Schywz, for example, a wealth tax is applied to all individuals with assets, including income and property, exceeding €49,824.

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