asked the Minister for Finance the estimated revenue yield in each year if section 2 of the Wealth Tax Act, 1975 was applied at the rate of 5 per cent; if the Government will reintroduce the wealth tax; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Wealth Tax.
5.
I have been advised by the Revenue Commissioners that the estimated full year yield from the reintroduction of wealth tax would be in the order of £50 million if the tax were applied at a rate of 5 per cent. Changes in taxation are a matter for consideration in the context of the budget.
Would the Minister not agree that the most equitable form of taxation that could be conceived is a tax on wealth? Does he not consider that a tax of this order would be a great help in reducing the burden on the PAYE taxpayer?
Taxation policy is a matter for the Government and they can give consideration to all aspects of taxation, as I am sure they will, in the weeks ahead. To put the matter in perspective in relation to the wealth tax, when it was in operation up to 1977 the rate was 1 per cent and at this rate the yield would now be approximately £10 million as against the £50 million at the 5 per cent referred to in the question.
What in today's money terms would be the yield of £10 million at that time?
It was £5.8 million at that time.
So the 1 per cent would yield £50 million in today's terms.
It would yield £10 million in today's terms at 1 per cent and £50 million in today's terms at 5 per cent.
Would the Minister not agree that this estimate is based on a very limited number of individuals to whom the tax had been extended? Would he not agree also that at the time of its inception it was suggested that it had the function of eliciting the profile of wealth and that that was probably the principal reason it was abolished rather than its yield?
The Deputy is probably correct, but I have to deal with the figures and statistics that are available to me.