Affluenza Shot

at

Minister for Culture Josepha Madigan

The Local Property Tax (LPT) was based on valuations of house prices after the economic slump.

Those valuations expire later this year and the property market recovery could leave families facing €500 tax hikes.

Culture Minister Josepha Madiganwants lower rates of property tax in affluent areas like her own constituency in south Dublin when the LPT review is completed by the Government.

“I would like to see a lower rate in areas with the highest house prices. Residents of south Dublin, for example, should be entitled to reliefs as they could be most affected,” she said.

FIGHT!

Lower property tax for homes of rich: minister (Ind

Rollingnews

51 thoughts on “Affluenza Shot

  1. Kdoc

    Her attitude to the masses is precisely what drives the type of action we have witnessed in Paris. People eventually say ‘enough is enough’.

    1. realPolithicks

      This^. Its reached the point where these MF’s don’t even feel the need to pretend anymore.

  2. Col

    Don’t forget that this is the same minister that has objected to housing developments in her constituency as it would effect house prices.
    She wants to have her cake, eat it and take yours too.

  3. Dr.Fart MD

    she doesn’t even offer a phoney reason, or some kind of thinking behind it. just bare-faced with FG wealth divide policies now.

  4. Rob_G

    Don’t worry Josepha – not only will FF and your colleagues in FG support you, but SF, PBP, and probably Solidarity/Socialist Party will all probably support any proposed reduction to LPT.

  5. Spaghetti Hoop

    LPT should never have been calculated on property prices in the first place. Now this wan is proposing a further parameter for what rate to charge – her mates!

      1. Spaghetti Hoop

        But the tax pays for local authority services, which do not fluctuate like house prices do. You are taxed further if you carry out home improvements, though you avail of no additional local services. I can understand if it were based on square metres and the public utilities used, but basing it on market value is nuts.

        1. Rob_G

          If we had (higher) property taxes based on market value, it would also go some way to reining in house prices a bit: house prices would grow a bit more slowly if buyers knew that the more they spent on a property, the bigger their ongoing tax liability would be.

          1. Spaghetti Hoop

            But spending money on your property is a good thing – why discourage it? When I bought my first house I couldn’t wait to do it up and maintain its value. The LPT is taxing ambition here instead of taxing consumption.

        2. Otis Blue

          What are these local services of which you speak?

          An abundance of club milk bars in the canteen and a preponderance of useless and unaccountable Directors of Service doesn’t count in my book.

    1. Rob_G

      “Local Property Tax is wrong.”

      Almost every municipality in the world has some form of tax relating to owning a property

      “Tax wealth and second properties instead.”

      Is owning a €1m residence not a form of ‘wealth’?

      1. Iwerzon

        Not if you bought it for 20k years ago, raised a family there, want to remain in your home, haven’t any actual financial wealth but an estate agent tells you your ‘asset rich’.

        1. Rob_G

          So, if you someone gains €980,000 through “market speculation”, they shouldn’t have to pay a penny extra in tax? That seems kind of mad, tbh

          1. Rob_G

            Why should it be exempted? There is no other field of financial affairs that would allow a person to become enriched to the tune of €900,000 without being charged a level of tax; I don’t think that owning a property should be any different.

          2. Cian

            @Rob_G
            “Why should it be exempted? There is no other field of financial affairs that would allow a person to become enriched to the tune of €900,000 without being charged a level of tax; I don’t think that owning a property should be any different.”

            If you bought shares and these increased in value by €900,000 you would not be liable for any tax on them (as long as you didn’t sell them).

            Once you sold them you would be liable for capital gains tax.

        2. Rob

          You would be a fool to stay there if you cannot afford the property tax on it.
          Imagine you did sell it, and had extra cash on the profit of the inevitable down sizing you will do.
          Should leave the LPT as it is, but reduce the inheritance tax on the family home.

          1. Rob_G

            The inheritance tax bands are already extremely generous – over €300k per child.

            Between charging people extra on their PAYE (e.g. on income that they earned through their own hard work), versus taxing people extra on wealth that they have not themselves earned, but that has come about through the inflation of property values (through either inheritance tax or property tax), I would opt for the latter.

          2. Rob

            There’s no reason to reduce inheritance tax on the family home.
            Why should people who get a house for free, not pay tax on it? The entire amount should be taxable. If necessary, there could be the option of paying the tax over an agreed number of years, with interest, but if you still can’t afford to pay that, then sell the house, keep half the value in cash (after tax) and get yourself something cheaper.

  6. Stan

    Property tax is fairer than council tax as levied here in the UK. A local income tax would be fairer still.

    1. Giggidygoo

      What do you get for your council tax in the UK? Do you know what we get for LPT in Ireland? Make a list and put them side by side..
      A local ‘income tax’. How would that work?

  7. Bruce_Wee

    I’m going to import Yellow Vests as a side business if Government officials keep making statements such as this.

  8. Mike

    Land should be taxed, rather than property. As things currently stand, the government wants property owners to upgrade their properties to make them more energy efficient etc, but then increases taxes on them for doing so.

  9. Bort

    I wouldn’t call Churchtown excessively affluent? If you got a property at a steal for 350k and now they’re valued at 650k you’re not necessarily cash rich! A lot of elderly residents there and young families.

    1. Col

      So what about someone who bought next door today at €650k? Should they be charged the lower amount like the ones who bout at €350k? Or should they pay more because they are more heavily indebted due to less favourable market timing? Or should they pay less even though they may be cash rich and may not.

      1. Giggidygoo

        There shouldn’t be a property tax on your main residence. You don’t gain an income out of it.

    2. spudnick

      Have you taken a spin around Woodside Dr/Hillside Dr lately? It’s mindboggling, a bit like a chunk of Foxrock. It really flies under the radar, as quietly but amazingly rich areas go.

  10. Mike

    You may not be cash rich but you’re sitting on 300,000 euro in income that you didn’t do anything to earn and you should be taxed on it.

    For those who are cash-poor but asset rich there should be deferral options, e.g. pay the taxes when the house is sold.

    1. CupOfTeaAnyone

      300k is not income until you sell the property. And Corporate tax is put in place for that.

      Would you argue that people who own a property that is valued at less than what they paid should get a tax rebate? If for example they are sitting on a loss of 50k

  11. Johnny

    ..Noblesse oblige…

    ‘In 1994 he publicly wrote to then taoiseach Albert Reynolds to resign from Fianna Fáil and stood successfully as an Independent opposing the residential property tax which he said Charles Haughey had promised him the party would abolish. It was, he said at the time, “the most obnoxious tax ever levied on the Irish people”. In his Blackrock ward, he claimed, 80 per cent of homes were over the tax’s £75,000 threshold.
    His earlier litigation over the issue had not succeeded, either in the High Court which ruled against him in November 1983, or the Supreme Court which likewise rejected his appeal the following November. But he was successful in 1981 in challenging the constitutionality of the Rent Restrictions Act and freeing landlords significantly from the constraints of rent control.‘

    https://www.irishtimes.com/life-and-style/people/politician-and-keen-litigator-on-behalf-of-property-owners-1.1774215

    -her oul fellas obit,he knew all about obnoxious…….

      1. Johnny

        Opportunist – The Andrews Dynasty – prior to imploding captured her hood – her oul fella was a two bit hustler and media hoor.
        Basically your typical FF wannabe.

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