Sir, - Can Charlie McCreevy clarify why the Bacon Report's recommendation to disallow, for tax purposes, mortgage interest on domestic property investment, was extended to property investment outside the state?
Surely such investment would curb the flow of monies into the Irish property market and impede its rise? If the purpose of the Bill is to cool Irish house prices, why has domestic property investment in other EU states been encompassed in the Bill?
Elimination of borders and freedom of movement, monetary or otherwise, is central to the EU ideology. Ireland has, via this provision, economically ringfenced its citizens. British, French, German, etc. nationals can acquire investment property here and offset the interest.
Ironically, I can own shares in EU property investment companies and offset the interest, but I cannot own EU domestic property and do the same. From an economic perspective, I can own shares in a house but I can't own a house.
Has the Goverment kidnapped the ideal of the Bacon report to piggyback legislation that will net it millions in additional tax rather than tackling the fundamental problem of spiralling Irish house prices? Does the Government expect us to embrace the EU ideology when it blatantly disregards it? What does Europe think? - Yours, etc., J. Cosgrove ACCA,
Monasterevan, Co. Kildare.