ASSIGNMENT ID
1015216
SUBJECT AREA Arts entertainment
DOCUMENT TYPE Essay
CREATED ON 11th April 2018

The Case for Introducing a Real Estate Tax, Collected at Local Government Level

I suggest that an annual residential property tax be released and collected in central government for an introductory period with a view to control being passed over to local government and the revenues generated by the tax to be utilized exclusively for local publicly provided goods. But for this to be an efficient and effective system of financing local governments rather than adversely affect the accounts of the exchequer there needs to be an overhaul regarding how local governments are currently funded and operate. Introducing a property tax will hopefully broaden the tax base and also move a different way to overhauling the way the tax system operates in Ireland and how local governments are funded. Rationale for a residential property tax in Ireland Stability There are many reasons in support of a residential real estate taxation. Firstly, it is going to provide a stable and less volatile earnings for its exchequer, as is the case with a trade like stamp duty, and typically improve macroeconomic stability. The tax income accumulated by stamp duty made a massive contribution to the exchequer, but as we can see from Fig 1.1, it tended to change, making it more difficult to budget long-term and prone to market forces, as is the case now. A “recurring yearly tax is not as economically distortionary than the imposition of taxation on either earnings or capital” (TSG 09/07) plus a more reliable and stable tax earnings achieved from a projected residential property tax will help with investment planning, as a “over-reliance on cost and transaction taxes has led to tax revenue dropping more quickly than (minimal) GNP” (Commission on Taxation Report 6:2.2). As we could see from the data included within the ‘Commission on Taxation Report 2009’ (Fig 1.1), revenues from sta...

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