31/05/23

IRELAND: Greens’ proposals to tax the mega-rich fail to clear EU Parliament hurdle.

As published on independent.ie, Wednesday 31 May, 2023.

The Green Party is pushing for new compulsory EU taxes on high earners and on the sales of assets.

A range of new taxes were recently proposed by a bloc of Green MEPs in the European Parliament, including Ireland’s Ciaran Cuffe and Grace O’Sullivan.

The proposals would allow the EU to introduce specific directives on the collection of tax in member states that would be focused on high-net-worth individuals and companies.

Ireland has long resisted interventions by Brussels in the country’s tax system but did align with EU plans to target energy companies with a windfall tax early this year.

The Greens/European Free Alliance – the European Parliament grouping that includes the Irish Greens – put forward proposals this month on how EU budget resources are collected. This is something the party said would help fight economic inequalities.

The group proposed a wealth tax for individuals and private households, a windfall/solidarity tax on companies, an EU minimum capital gains tax, and a tax for top-earned income.

The Greens say the taxes would be targeted at extreme levels of wealth and wouldn’t affect the general population which is struggling with the cost-of-living crisis.

However, all of the proposals were voted down by other European Parliament MEPs and their groupings.

Had the Greens been successful in passing their tax suggestions through the parliament, it would have then been up to the Council of the EU – where all member state governments are represented – to vote on the proposal.

If the proposal was approved, member states would have been directed to create taxes and contribute a portion of the revenues to the EU budget. The EU currently has directives on VAT that affect the Irish Budget.

Dublin MEP Ciaran Cuffe said he supported higher taxes on extreme wealth.

“In Ireland in 2023, the richest 1pc own 27pc of the wealth. It is exceptionally unfair that wealth is allowed to accumulate in this way while households suffer under the cost-of-living crisis,” he said,

“We need a more progressive tax system that tackles extreme wealth effectively and helps to fight economic inequalities. I voted in favour of amendments calling for this in the European Parliament, but this was not supported by a majority.”

Some in the Green Party have long argued the EU should introduce compulsory environmental taxes to force member states to significantly reduce carbon emissions.

Details of the Green plans for new income and asset taxes follows a week of rows between the Coalition parties over Fine Gael proposals to give taxpayers a €1,000 tax cut in October’s Budget.