Commission on Taxation recommendations

An RTÉ report outlines the recommendations from Ireland’s Commission on Taxation report. [pdf file] Opposition parties, and other interested groups, are reportedly wary. Adds According to Taoiseach Brian Cowen, the report “is setting a framework for reforms over the next decade.”From the RTÉ report

Outline of proposals

An annual property tax on all residential property excluding social and local authority housing

Child benefit should be a taxable income with a tax credit to offset the increase in tax for low income earners

– A new three-rate income tax system should be introduced to replace the current high and low income tax rates

– The health levy should be abolished and integrated into income tax system when fiscal conditions improve

– Rules on residency and tax exemption should be strengthened

– Stamp duty on ATM, credit and debit cards should be phased out in the interest of promoting cash free society

– Removal of tax relief for nursing home expenses once the Fair Deal scheme ends

– The current ‘Cinderella clause’ needs to be supplemented with additional tests and criteria

– Additional capital gains tax should apply on windfall gains from property rezoning

– Domestic water charges should be phased in, with incentives to install meters, with a waiver for low income households

Carbon tax based in tonnes of carbon should be introduced and collected at earliest point of supply

VRT should be replaced over ten years by a system based on car usage

Tax relief for pension payments should be replaced with a scheme ‘along the lines of the former SSIA scheme’

– The first €200,000 of pension lump sums should be tax-free with remainder taxed at standard rate

– Ireland’s low corporate tax rate should remain in place to support economic activity long term

– End to the artists’ tax exemption

– Expenses of Oireachtas members should be treated as the same way as expenses paid to all other employees, with a limit placed on the dual abode allowance and an end to the flat rate of relief for accommodation.

– End stock relief for farming business but continue relief on farm land leasing

– Income tax relief for trade union subscriptions should be ended