Sir, – My wife and I purchased a home for our family in Finglas in 2008. We did so to be close to our family, an important support when raising our children while both working to pay a mortgage. At that time we also paid a property transaction tax (stamp duty), which was borrowed and which we pay off each month as part of our mortgage of €1,500. Like many young families, our childcare comes to a similar figure.
If the Government now proposes to take more money from our family income, it can only come from our take-home pay. Economists argue that the introduction of a property tax will help to broaden our tax base, bring accountability to local government and prevent increased taxation on employment. However, it would appear that current plans by the Government will do none of the above. If PAYE employees pay this tax from their take-home pay, it is de facto an income tax, disproportionately affecting those with less income. If it is levied on those who have recently paid stamp duty, it will be a double property tax; and if it is set by national and not local government, it will do nothing to make local government accountable.
Extracting blood from a stone is not possible and tax can be paid only if one has income or wealth to pay it. Taxing a notional value on a property which we do not yet own, and which we struggle to pay for, is madness. Perhaps Mr Noonan could come back to me in 25 years when I have no mortgage and when I actually own a property.
In the meantime, I am happy to pay a small and fair local charge set by my local authority that will fund local services. – Yours, etc,