Advantages Of Wealth Tax

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Wealth Tax Report
Introduction
Ireland’s economic crash has generated a Hugh crisis in the public finances. This crisis came to an end in 2010 when they were forced to leave the sovereign bond market and accept to an EU/ECB/IMF loan facility with accompanying policy conditionality. This action has enclosed cuts to capital spending, cuts to public services, cuts to income supports and other social transfers, cuts to pay, increases to regressive taxes such as VAT and excises, new taxes such as the local property tax and soon water charges as well as increased taxes on income. Wealth Taxes are especially enticing in distributional terms and taxing wealth and the wealthy can be a critical aspect of social solidarity, especially at a time of declining
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Wealth taxes are taxes on the actual holding of wealth. There are many advantages of introducing a wealth tax. You can see the revenue yield is a benefit to the exchequer. In business the contribution of net wealth taxes and wealth transfer taxes to overall government revenue has been very small across OCED.
Taxing the wealth is an important aspect of modern democracy, especially at times like cutting welfare and increasing taxes on the middle earners. The OCED state that a wealth tax levy on the rich individuals could be very successful and should be compared with personal income tax in assessing the progressiveness od a tax regime.
Wealth taxes will be paid out of income in order to address ability to pay concerns, a ceiling provision is usually included in net wealth tax legislation which states a maximum combined effective rate for income tax and wealth tax.
In the long term a well-designed wealth transfer tax is likely to be more effective than a recurrent net wealth tax at reducing inequality in the distribution of wealth. This is because taxes on generation wealth transfers target and reduce the array of individual’s initial wealth
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Comparing countries can be hard as each country has different economic and legal systems from each other.
France
It is the only EU country to introduce a wealth tax. Wealth tax in France is based on the overall net worth above €750,000. This includes assets after deduction of exempt property of debts. The wealth tax in France, many rich people leave the country and as a result of this France loses money. A report stated that 843 people left France in 2006 due to the wealth tax. This took away 208 billion of wealth from France. The tax in France is calculated as follows: Total wealth of €790,000, foreign assets are not included in the first five years of fiscal residency in France.
The Irish Wealth Tax Experience
Ireland had a net wealth tax between 1975 and 1978. Patrick Lyons conducted a study and this is how the wealth tax became about in Ireland. The wealth tax was introduced in April in 1975 was unrecognisable from what was produced on white paper. When Fianna Fail got into power they abolished the wealth tax in 1978.
The wealth tax at the time was at a rate of 1% of taxable wealth. The threshold was £70,000 for a single person, £90,000 for a widowed person and £200,000 for a married person. For each minor child it was raised by

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