Dáil Éireann Debate, Tuesday - 29 September 2026
135. Deputy Paul Murphy asked the Tánaiste and Minister for Finance if he will reconsider increasing taxes on wealth and capital in Budget 2027, in view of recent research by an organisation (details supplied) that predicts increases in returns to capital as a result of AI adoption and recommends diversifying the tax base by expanding taxes on wealth and capital; and if he will make a statement on the matter. [68603/26]
View answerDeputy, I note you are referring to the recent paper published jointly by the ESRI and the Department of Finance entitled Artificial Intelligence and Income Inequality which looks at a range of potential scenarios around the effects of AI on employment, wages, and capital income.
The paper models scenarios for job losses distributed across occupation sectors relative to their AI exposure, and wage gains distributed relative to occupations’ AI complementarity.
Overall, the paper finds that in the short-term, AI adoption could lead to a decline in household disposable income if the effects of employment loss outweigh productivity-driven wage growth and increases in capital income.
That said, the paper finds that Ireland’s tax and welfare system is well placed to help cushion AI-related income losses, in particular for low-income households. Income losses for the highest income households are also partly cushioned by the modelled increase in capital income.
On the broader issue of introducing a stand-alone wealth tax, as the Deputy will be aware, wealth is already taxed in a number of ways in Ireland. These include Capital Gains Tax, Capital Acquisitions Tax and Local Property Tax. Stamp Duty also acts as a tax on wealth, including that charged on the acquisition of the shares, stocks and marketable securities of Irish registered companies, and on the acquisition of property both residential and non-residential.
The revenue raised from a wealth tax, regardless of the form it takes, may not be additional to that raised by the existing forms of wealth taxation, as the revenues from those taxes could be impacted by the introduction of a wealth tax.
It is also important to note that Ireland has one of the most progressive taxation systems and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.
In 2016, my Department worked with the ESRI to conduct a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax. Recognising the passage of time that has elapsed since this research project was undertaken, my Department and the ESRI are currently conducting analysis under its Joint Research Programme of the potential impact of a tax on household wealth in Ireland. This will include scenario and distributional analysis under a range of wealth tax scenarios.
It is expected that a draft paper will be completed and published before the end of the year and I will consider the analysis in due course.
The Government has no plans to introduce a new Wealth Tax in place of, or alongside, those taxes already in place which are charged on the income from, or the transfer of, wealth, although all taxes and potential taxation options are kept under constant consideration.
