In recent weeks there has been some media discussion about the introduction of a targeted net wealth tax in Ireland. This has been triggered by a news report that there are now eleven US Dollar Billionaires in Ireland, assuming it was using the American short form definition of Billion. Ireland uses the Euro € as currency, but does love speaking in American.

The proponents of the report have said that “….what is being proposed here is a very modest tax on net wealth above €3 million which only applies to the top 1% of the wealthiest household.”.

Elsewhere they are also suggesting that this 1% increase could generate an additional €1 billion in tax revenue. They are light on the maths.

In 2025 the income generated by personal taxation in Ireland was €73 billion, based on a population of around 5.4 million people. Switzerland has a tax revenue of around €180 billion and a population of around around 8.5 million people. Denmark is 6 million people, with a tax revenue of around €50 billion.

The Irish €1 billion sounds like a lot, and it is in real money, a lot, it is less than 1.4% additional tax income for the government. For the hoi poloi this will make next to no difference at all.

If Oxfam, instigators of this latest thought experiment, really want to generate real change and tax equality, here are some suggestions.

Capital Gains Tax (CGT) vs. Income Tax : Capital Gains Tax (33%) is lower than the top Income Tax rate (48% for earnings over €42,000). This benefits investors and asset holders, who pay less tax on gains compared to salaried workers. Capital Gains could rise with income tax reduce to meet in the middle. Capital Gains should be seen as Income and taxed in the same way.

Additionally, to encourage low income earners to save, tax on interest on savings under, say, €10,000, could be zero rated.

Corporation Tax Concentration : Ireland’s 12.5% corporation tax rate attracts multinational corporations, but the system is criticized for allowing tax avoidance by tech giants and large firms. This creates an uneven playing field for small and medium-sized enterprises which cannot exploit loopholes. Income tax is therefore almost four times higher for people than multinational corporations and, mostly, American Tech’ Companies.

It should also be noted that the Irish Government took legal proceedings against the EU and lost, for not collecting enough Tax and illegally subsidising Apple : €13 billion Euro. This is 13 times that proposed by the Oxfam targeted net wealth tax. In the EU, Hungary and Bulgaria have the lowest Corporation Tax at 10%, Ireland is next at 12.5%. The Average across Europe is 21%.

Property Tax Inequality : Ireland’s Local Property Tax is based on property values but is not progressive; wealthier individuals in high-value properties pay proportionally less than they would in a more progressive system.

Additionally, renters receive no tax relief, while property owners benefit from mortgage interest relief, which was phased out for new borrowers but still exists for older mortgages.

Tax Reliefs for Landlords : Landlords benefit from tax deductions for mortgage interest, wear-and-tear allowances, and other expenses, while renters receive no equivalent tax relief. Additionally, allowing tax relief for landlords turns properties for living into state subsidised cash cows for those who can leverage existing property equity. In turn this exacerbates the housing and living issues faced by millions in Ireland , driving up housing costs and benefiting those who already own property.

Tax on Rental Income : Married couples can jointly own rental properties, which may allow them to offset losses or expenses more effectively than single individuals. Additionally, married couples can split rental income to stay within lower tax brackets, whereas single landlords cannot.

Tax Exemptions for High-Income Earners : High earners benefit from tax reliefs such as pension contributions (up to 40% tax relief for top earners), private health insurance subsidies, and BIK (Benefit-in-Kind) exemptions for company cars and other perks. These refunds could simply be removed. As a minimum, the

VAT Inequality : VAT is regressive; it takes a larger proportion of income from lower earners, who spend a higher percentage of their earnings on essential goods (like food and clothing, which are taxed at 0% or 5%) compared to luxury goods (taxed at 23%). However, luxury services (e.g., private education, healthcare) often avoid higher VAT rates.

Marriage Tax Credit vs. Single Person Tax Credit : Married couples can claim the Marriage Tax Credit (€1,700 per year), while single individuals receive the Single Person Tax Credit (€1,875 per year). However, the married credit is not transferable, meaning a couple where both partners earn similar incomes pays more tax than a single high earner, while a couple with one high earner and one low earner benefits significantly.

Home Carer Tax Credit : Only married couples or civil partners where one partner is a full-time carer can claim the Home Carer Tax Credit (€1,875 in 2026). Unmarried couples (even if cohabiting) and single parents do not qualify, creating inequality for those in similar caregiving roles.

Dual Income Tax Bands : Married couples can split their income for tax purposes (e.g., using the Married Couple’s Tax Band), which can reduce their overall tax liability if one partner earns significantly more. Unmarried couples and single individuals cannot benefit from this, leading to higher tax bills for dual-income married couples compared to unmarried couples in similar financial situations.

Tax Relief for Private School Fees : While Ireland does not have direct tax relief for private school fees, high-income families (often married couples) can avail of tax-efficient savings schemes (e.g., Approved Retirement Funds (ARFs) or pension contributions) to fund education, whereas single parents or unmarried couples may not have the same financial flexibility.

Tax on Spousal Transfers : Married couples can transfer assets (e.g., property, investments) between themselves without Capital Gains Tax (CGT) or Stamp Duty. Unmarried couples and single individuals must pay these taxes when transferring assets, creating a significant disadvantage.

Tax on Dividends and Investment Income : Ireland’s Dividend Tax Credit and Exit Tax disproportionately benefit married couples who can structure their investments jointly to minimize tax liability. Single individuals and unmarried couples cannot split income in the same way, leading to higher tax bills for the same level of investment income.