Social Democrats Propose ‘Super Wealth’ Tax to Raise €200M Annually

The Social Democrats have unveiled a proposal for a “super wealth” tax aimed at raising up to €200 million annually. The tax would exclude family homes, family businesses, and agricultural land valued under €2 million, focusing instead on “excess wealth.”

The tax would be applied at a rate of 0.5% on assets exceeding €1 million, and 1% on assets over €2 million.

At the launch of the party’s general election manifesto, deputy leader Cian O’Callaghan emphasized that the tax was designed independently of other parties or government formation. He clarified that it was not aimed at homes but at wealth beyond the norm. The tax is intended to target substantial wealth while exempting family homes.

O’Callaghan also outlined the party’s “red lines” for entering into a coalition government, including the construction of 50,000 affordable homes for purchase annually, the creation of a Cabinet position for Disability Minister, full implementation of the Sláintecare health plan, a public childcare system, and a revamped climate action strategy.

In addition, the Social Democrats pledge to decriminalize small amounts of drugs for personal use, take a health-focused approach to drug policy, and increase funding for addiction treatment services.

The party proposes building 75,000 affordable homes over five years, with 50,000 for purchase and 25,000 for rent. They also aim to ban vulture funds from purchasing existing homes, introduce a rent freeze for three years, and outlaw no-fault evictions. A rent register and tenant deposit protection scheme would also be implemented.

The party plans to increase the vacant house tax from 0.7% to 10%, and to legislate for a “legal entitlement” to Sláintecare, which they commit to fully implementing during their time in government. They also aim to add 5,000 extra hospital beds by 2030. Prescription charges will be reduced to 50 cents, with a cap of €5 per month.

The Social Democrats also propose maintaining the 9% VAT rate for households and businesses and installing 100,000 solar panels on homes annually.

Social welfare payments would be aligned with the Minimum Essential Standard of Living (MESL) as defined by St. Vincent de Paul, which estimates a single adult needs at least €280 per week to cover basic needs. A “cost of disability” payment would also be introduced.

To encourage cultural participation, the party proposes an annual €200 culture voucher for individuals aged 18 to 24. Additionally, a special €1 fare for public transport would be introduced during off-peak hours to promote its use.