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Dublin: 10 °C Sunday 26 May, 2013

Opposition TDs call for property tax reductions for struggling householders

Billy Kelleher and Mattie McGrath both called on the government to introduce reductions especially since they believe that some pressure has been lifted since a deal was reached on the promissory notes.

File photo
File photo
Image: Laura Hutton/Photocall Ireland

THE MINISTER FOR Expenditure and Public Reform, Brendan Howlin, said they would debate the terms of the Household Bill for those who cannot afford it and are struggling to repay mortgages when it comes through the Dáil in the coming weeks.

The Minister was responding to calls from Fianna Fail TD, Billy Kelleher and Independent TD, Mattie McGrath who both raised the issue separately during Leaders’ Questions in the Dáil this morning.

They both called on the government to introduce reductions for people who are struggling, especially since they believe that some pressure has been lifted since a deal was reached last week on the promissory notes.

Kelleher referred to yesterday’s CSO report which found that the number of people unable to afford basic necessities has jumped significantly. He said the property tax was unfair and unjust and “doesn’t take into account ability to pay”.

Howlin responded by blaming many of the problems they were dealing with today on Kelleher’s party. He said: “Fianna Fail brought this country to economic ruin… It was the worst government in the history of this state.”

Desperate

McGrath referred to the elderly who are in “desperate” situations and those who have paid a lot of money in stamp duty as examples of groups who should be exempt or have allowances made when it comes to paying the household charge. He called on Howlin to give some relief to the people who most need it.

Howlin responded to Kelleher’s and McGrath’s demands by reminding them that “we are still borrowing over a billion a month”. He added that we needed to “broaden the tax base” and part of that is introducing a property tax.

Howlin said the “detail of the property tax” will be debated step-by-step and will be looked at “in as fair a way as possible”.

Both discussions caused a lot commotion from other TDs around the chamber and the Ceann Comhairle, Sean Barrett, had to interject on numerous occasions.

Finally, Howlin defended the ‘snitch clause’ that says people selling their home face fines of €500 if they have not disclosed to the new buyer the correct value of their property, by calling it “open and transparent”.

Read: Property tax: Seller faces €500 fine if they under-declare value of home >

Read: You asked, we answered: What you wanted to know about the property tax >

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Comments (68 Comments)

  • Its good to see that social housing tenants will have to pay the household charge.because not every one in council housing is unemployed.

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  • What about giving people credits for the stamp duty they paid. This tax has already been collected by the gov in huge amounts & cash-strapped mortgage holders are still paying for it. Seems like double taxation to me.

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    • People need to ask for abolition of property tax. There are plenty other avenues besides penalizing someone with a roof over their head. Property tax is in effect a tax on jobs – just a different name.

      Reply
  • Pong 14/02/13 #

    I paid 32000 euro stamp duty 5 years ago, added on to my mortgage, I will be paying 200 a month over the next 15 years before that 32000 will be paid back…. Now they want more ….. F… O..

    Reply
  • Pablo 14/02/13 #

    Whats a struggling household? I went to Doc yesterday. While I was there two middleaged women came out of two docs offices and started talking about where they were going for meals and drinks at the weekend, both had medical cards, both payed nothing going out the door. 15 mins later I come out of the docs, €50 on the credit card, cause I dont get paid till Friday, from my job i had to take an hour off from to visit the docs. I ain’t going out this weekend, great country. Who’s struggling?

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  • The politicians should firstly take a 40% pay cut as they are grossly overpaid… Sickening. Expenses on top as well.

    I aint paying any property taxes as it’s totally unfair and unjust when most folk are in a bad way nowadays. F’ off to the troika and damn fianna FAIL for getting us into this huge mess..

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  • I would be happier paying a property tax if my stamp duty had not been so exorbitant, my management fees were not so high, (in part due street lighting, road maintenance, public areas etc. which the council do not cover), and if I felt we were getting commensurate services – ie money invested locally, not funnelled off to unsecured bond holders who had no plan to share their profits with us. I really do wonder if a list of decision makers on bailing out banks and unsecured investors were put side by side how many names would match.

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    • your management fees have nothing to do with this, they pay for your building repairs, bin collection ect. Pepole who own house still have to pay out for repairs and bin collection just like you pay a management company. so what’s your point

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    • Reg 14/02/13 #

      Silly letter in the Irish Times today, someone complaining about management fees in relation to property tax. http://www.irishtimes.com/letters/

      Does he not realise that people who have houses also have to pay for their own garden maintenance, driveway, repairs, insurance, bins, repairs etc etc. How do people who own apartments suggest that the lighting and maintenance of communal areas as well as insurance, maintenance, bins etc etc be paid for?

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    • Paul 14/02/13 #

      Reg it’s not just people in apartments who pay management fees, lots of people in newer housing estates pay them to cover the costs of lighting, maintaining roads and footpaths, public liability insurance for these private roads which are open to the public, mowing lawns in the greens, planting flower beds and shrubberies etc. These costs are borne by the council in more established areas but by homeowners in newer developments, including housing estates as well as apartments. How is it fair that we chip in for maintaining public gardens in posh areas, but when it comes to repairing roads and pavements only residents pay?

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    • Reg 14/02/13 #

      Why have the local authorities not taken over the maintenance of these housing estates Paul?

      My comments were in relation to apartment owners as per the letter in today’s IT.

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    • Perhaps if you reread my comment you will see that I cite none of your reasons. I fully accept part of the management fee make up is in relation to repairs, bins etc. This is not my issue. I am paying privately on taxed income my management fee, as well as local taxes for roads, public parks etc through income tax. I.E. I’m paying twice.

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    • Paul 14/02/13 #

      Various reasons but it’s fairly common.

      Reply
    • Paul 14/02/13 #

      Where I live there’s an underground car park under one of the roads so the roads, footpaths, street lighting and other costs are for residents to pay. Lots of developments had it in their planning conditions that a management company be formed and the local authority will never take it over.

      Reply
  • No reductions, but yes, you should be allowed defer the payment until house passes hands if your strapped for cash,
    The trouble with exceptions is the wrong people end up getting them

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  • How about broadening the tax base by taxing those who can well afford it. People earning 100k + can well afford to pay another 5,000 a year whereas people earning less than 30k can’t really afford 500 less.

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    • Conor 14/02/13 #

      Yes taxing the people who already pay percentage wise the most already in taxes? Why would you bother working hard and doing well?

      Perhaps the person on a low wage should have worked harder to earn more money?

      Reply
    • Paul 14/02/13 #

      How much did the educational qualifications of those on €100k+ cost them? Is it really unfair to ask a little more from those who have most to give and who have benefitted most?

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    • Tax the wealthy,they are the ones who are paying less tax than the ordinary working people because they have accountants who know all the loopholes to avoid paying tax

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    • Conor do all people on a low wage not earn their money?

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    • Conor 14/02/13 #

      They do earn their money, no the high salaried people don’t all have accountants getting them off paying tax, they pay more than everyone else percentage wise if you care to look up Ireland’s tax rates. The people on low wages had every opportunity to work hard and educate themselves so why punish those who had the gumption to do exactly that?

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    • Reg 14/02/13 #

      Anne, I think you’ll find that Ireland has a pretty progressive income tax system and that the rich pay the vast bulk of the income taxes collected. No doubt there are some super wealthy who can pay accountant to avail of tax avoidance measures but even these have been tightened up on in the last few years.

      Reply
    • Pablo 14/02/13 #

      With all due respect Conor, thats a bit of a generalization. Just because you earn more it does not mean you work harder. I have personal experience of this. Granted, the better paid may have spent longer in college alright.

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    • Conor 14/02/13 #

      Well in fairness I entered college in 2007, I could’ve got a well enough paid job at the time like so many other people did without further education.

      But no I chose to live on less money while going to college whilst working at night and at the weekends. Life is a choice and those choices create consequences.

      The people who chose to work hard and get an education should not be expected to pay for the people who chose to take the easy route and just take the job in the good times.

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    • Conor Mr Fingleton, was well educated and well payed, still messed up,
      Education in of itself is just a stepping stone, an education that is subsidised by the rest of us,
      Senior mgt payed themselves very well in good times, example greater percentage pay increase under benchmarking , pay cuts now should see greater pay percentage pay cuts also for these senior mgt
      Private sector pay for the directors continue to rise while laying off and cutting pay for the rest
      Be fair

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    • Conor 15/02/13 #

      Actually if you look at him Fingleton wasn’t that well educated. Cheers for subsidising my education but I’m paying you back by subsidising your dole. :-)

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    • Not my dole , never claimed in my life, thank god

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  • NO to property tax and water charges. NO NO NO.. F’ off Troika.

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  • “The Irish will just have to learn to die beyond their means ….”

    Your TD plans to take the house off your family when you die if you don’t pay up!

    Surprised more people havn’t signed the http://www.HomeTaxPetition.net

    Reply
  • Blah, blah, blah, Fianna Fail did this Fianna Fail did that, you knew what they did when you ran for government, you’re all a bunch of self serving hypocrites, I don’t know how you look yourselves in the mirror?

    http://www.youtube.com/watch?v=yjhxp-JJqDo

    Reply
  • Reg 14/02/13 #

    I’m afraid that the effect of reckless banking was the huge growth in public spending between 1997 and 2007. Fianna Fail doubled public spending in a ten year period based on the taxation of money borrowed from the banks and pumped in to the economy. The fact that public spending increased so dramatically based on transactional taxes of borrowed money is indeed a huge part of our problem.

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  • just dont pay it , dont pay the water either , remember your only paying it to keep NAMA developers ticking over until the next property boom

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  • sean 14/02/13 #

    Enda …………you can stick your property tax where the rats can,t get it
    I DO NIT HAVE ANYMORE MONEY TO GIVE , WHAT PART OF THAT DO YOU FG TOSSER,S NOT GET , time for you parasites to look in the mirror for more taxes

    Reply
  • FF = the PERPETRATORS of this hideous situation,
    FG = the willing EXECUTORS of this hideous situation, both culprits in the country’s greatest heist of wealth the people has ever witnessed……simple

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  • I think people who bought during the boom should be taxed twice- a stupidity tax if you like… X

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  • Apartment dwellers should get some kind of relief if they have steep maintenance charges.

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  • also its a never ending circle of price increases to pay wages and pay rises to pay for price increases,upward only rent does not help either and if it was a truely competive market that would be against the law.
    water charges and property tax are the next in line for the allready overburdened taxpayer local authority tennants WILL NOT escape either as the councils will be passing this charge on in the form of rent increases which i suspect be every bit as much as if the tennant owned the said dwelling.
    this is surely another attempt by the government to drive wedges between various sections of OUR community and to promote class division such as urban vs rural, welfare reciptients vs working man and so on, this is done in realityto hide their(the government) ever growing incompetance

    Reply
  • Reg 14/02/13 #

    Perhaps there should be some discounts available for those that are on social welfare or below a certain income threshold but at the end of the day this is a pretty modest property tax by international standards (I know you get more services in other countries). The fact that this is Fianna Fail complaining about it though………

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    • Modest!? Nothing in Ireland is modest… Most expensive car tax in Europe, most expensive (illegal) VRT in Europe, most expensive medication in Europe, most expensive politicians in Europe if not the world (excluding third world corrupt countries)…I can go on if you want…we WILL have the most expensive property tax in Europe and its only a matter of time, a few years of steady and stern increments, “Irish Style” of course and we will still have to pay for our bins and water separate lolololol….. Makes me laugh what a joke and I don’t k ow who to pity the most, the politicians or the electorate……

      Reply
    • Well said

      Reply
    • Conor 14/02/13 #

      The point they made is that the property tax as it currently stands is modest compared to both our European and US neighbours.

      If you want to go off on a tangent maybe you should go off and write an article for the daily mail?

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    • @Conor
      but do we get the same value for our money as our european and us neighbours.

      Reply
    • Conor 14/02/13 #

      No because Ireland spends far too much as it stands on social welfare and benefits, and not enough on services for those who contribute most to society.

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    • Yes I agree Conor
      my only problem with the household tax is that,
      its anything but

      Reply
    • Julie 14/02/13 #

      Why are they having to spend so much on social welfare, maybe it is because they ruined the economy, ruined jobs, forcing people onto social welfare. Now they are continuing with austerity which clearly is not producing any significant growth(=jobs ) and are actually taking more money out of people pockets leaving them with less money to spend and in turn damaging the economy more leading to more job losses, leading to more jobs being lost. It pretty simple.

      Reply
    • A tax that rewards Financial Criminal Elites, Noonan?
      What next?
      A tax that rewards Clerical Perverts and Pedophiles?

      Reply
    • Conor 14/02/13 #

      Julie for someone who claims to have a first class degree in Business Management, your understanding and comprehension of basic accounting and economics is laughable.

      Again austerities goal is not to create jobs it is to balance the governments books.

      Again there is a limit to how much money the government has.

      Again the government didn’t take away anyone’s job. Bar some voluntary redundancies in the civil service.

      Ireland is a small open economy that was too dependent on construction and its periphery industries for employment for most of the past 20 years. Once construction stopped, people lost their jobs in construction and its related industries. This had a knock on effect on everyone in Ireland.

      You can bitch and moan about how it’s the governments fault but that does not make it true.

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    • Conor, the problem with austerity is that it is clearly not working, it might not be the intention to put people out of work but that is what it is doing. It is a self defeating policy as it will not balance the books but put the country further into debt, less people working , more claiming the dole, less money in people’s pockets and down the spiral goes. All we hear from the government is that the country is broke and cuts have to be made yet 20 billion a year can be found to pay banking debts and bond holders , it is a case of priorities and the government has put bankers and bond holders at the top of its list, regardless of the social costs . There are other options to austerity ,they have just never been looked at, even the IMF now admits austerity has made the situation worse.

      Reply
    • Conor 14/02/13 #

      For a start , the government pays 20 billion a year to banks and bondholders is an outright lie.

      Secondly what are the other options to austerity, which have been factually appraised and haven’t been made up by certain socialist TDs after a few house measures of whiskey.

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    • Reg 14/02/13 #

      Deborah, there is 12 billion hole this year excluding bank debt. We can’t continue to spend money we don’t have. Cuts have to be made and taxes have to increase. It can be argued that better choices could be made but there’s no getting away from it I’m afraid.

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    • Agree. Politicians afraid to cut the dole, as it attacks the “most vulnerable in society” (approx half the population!). But look at what they are cutting: home career allowance, blind carers allowance, employment of modestly paid frontline staff, etc. I’d keep services and cut the dole, less unemployment and more sustainable. By the way, in favour of property tax as it can’t be avoided by high earners as with income tax.

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    • Ok, but surely cutbacks should focus on pay (esp. high earners) and keeping people employed. Lower paid workers spend higher portion of income in local economy. Heard a quote: “in a recession, government spends, in growth, consumers spend.

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    • Has austerity been properly appraised? The Great Depression? The rise of Nazism after Germany was made pay back every red cent from WW1?

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    • Who’s on a tangent now Conor?

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    • Reg 14/02/13 #

      Dole was cut Thomas. But you’re right about the high PS pay and pensions. Not enough cuts there.

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    • @conner
      the reason our benefits are so high is the cost of living here is higher than the cost of living in europe (a lot higher)

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    • The payment of twenty billion is not a lie, unfortunately , the alternatives to austerity are for government spending to stimulate the economy until it improves and the private sector becomes strong enough to grow the economy by itself. It is what they are trying to do in the US at the moment. This sneering at any alternatives from the left makes me laugh when you look at where neo liberal policies have gotten us

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    • As I said Reg this thinking is just getting us further into the mess we are in, government spending did not cause this problem, reckless banking practices did.

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    • Conor 15/02/13 #

      Deborah, you said the government spends 20 billion a year on banks for dramatic effect which was a complete lie. Our welfare is way too high, things pretty much cost the same in the UK and they get a vastly reduced rate.

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    • Conor 15/02/13 #

      Also at Deborah there is no money to use to stimulate unless Coillte has discovered a money tree in Boyle forest park.

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    • Conor 15/02/13 #

      And yes it was government spending that got us into this mess, was pretty much Budget 2002 that led us into this abysmal state.

      Reply

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