Dáil Éireann Debate, Tuesday - 24 January 2023
96. Deputy Bríd Smith asked the Minister for Finance his views on the growth in the number of millionaires in the State, identified in a recent report that showed the two richest people in the State have more wealth than the poorest 50% of the population; and his views on whether Government policy has driven or is responsible for this trend. [3106/23]
View answer98. Deputy Richard Boyd Barrett asked the Minister for Finance if his attention has been drawn to a report (details supplied) on wealth inequality in Ireland that found the number of Irish people with individual wealth of over €46.6 million has more than doubled between 2012 and 2022, rising from 655 to 1,435 people, and that the two richest people in Ireland have more wealth than the poorest 50% of the population; and if he will make a statement on the matter. [3110/23]
View answerI propose to take Questions Nos. 96 and 98 together.
The latest data from the Central Bank of Ireland show that Irish household net wealth has more than doubled between the second quarter of 2012 and 2022, to reach €1,025 billion. These data also show that the vast majority of household wealth is held in the form of households’ main residence, with the main driver of increases in wealth in recent quarters being positive revaluations in housing assets.
Importantly though, in addition to wealth growth, data from the Central Bank’s Distributional Wealth Accounts show that net wealth inequality has declined. The Gini coefficient – a common measure of inequality – fell from 0.78 in the second quarter of 2013 to 0.68 in the first quarter of 2022.
The Government is committed to creating a fairer, more equal Ireland. In this respect, Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax all represent taxes on wealth. The Revenue Commissioners estimate that these taxes raised over €2.8 billion last year.
In addition to wealth taxes, the Government takes action against inequality through the broader tax and welfare system. In fact, Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.
The Revenue Commissioners estimate that the top 1 per cent of income earners, those earning in excess of €263,000 will pay 23 per cent of the total income tax and USC collected in 2023. Those earning less than €65,000 which represents the bottom 80 per cent of income earners, will contribute only 21 per cent of total income tax and USC receipts.
