People Before Profit outlines alternative budget featuring vacant property tax

Increasing paid maternity leave to a year and a “punitive” vacant property tax are among the proposals in People Before Profit’s alternative budget

The total package is worth 35.9 billion euro in extra spending, with the party arguing that if existing wealth in the country was taxed differently, it would generate 36.3 billion euro in revenue.

In its budgetary document, launched on Friday, the party called for public transport to be made free at a cost of 540 million euro, for the carbon tax to be abolished at a cost of 774 million euro, and for the State to buy the Conor Pass in Co Kerry for 10 million euro.

The party is pledging to build 7,000 additional social homes at an average cost of 318,112 euro each, costing a total of 2.2 billion euro.

It is also proposing a renter’s tax credit of 2,000 euro as an interim measure pending rent controls, costing 600 million euro.

People Before Profit said that paid leave for mothers should be increased to a year, and paid leave for fathers increased to 28 weeks, at a cost of 487 million euro.

The party has said that a new, publicly funded childcare scheme would cost 450 million euro and could begin to become available from early 2024.

The party would also abolish the TV licence fee and advertising at RTE, instead increase public funding for the broadcaster to 500 million euro and allocate a further 500 million euro for other public media organisations.

The party has said profiteering and wealth inequality were the real reasons for the cost-of-living crisis, and has argued that a change in taxation could drastically increase revenues.

It said 20 billion euro in revenues could be raised by increasing corporation tax to 20% for large corporations and closing loopholes, and a further 5.9 billion euro by introducing a wealth tax for the top 5% of households.

A windfall tax on energy companies would generate a further billion euro, it said, as would tech company taxation to fund public service media.

It also proposed introducing higher PRSI rates for employers – a new rate of 19.75% on any salaries paid over 90,000 euro, and an increase in the 11.05% rate to 13.05% – which it said would raise 2.56 billion euro.

A “punitive” 1,000-euro-per-month tax on vacant homes is also calculated to generate 480 million euro in revenue.

Speaking at the launch on Friday, TD Richard Boyd Barrett said that taxing a small minority in society would fund better housing, health and child services provided by the state.

“The government has never had so much money at its disposal, yet they say they will not spend it on measures to fully alleviate the cost-of-living crisis, building the needed social and affordable homes or adequately resourcing our public services because they claim it will lead to inflation.

“We are saying that, in reality, inflation, cost-of-living hikes, the housing crisis and the other problems facing our society result from profiteering and staggering inequalities in the distribution of wealth.

“The last two years have seen an acceleration in the transfer of wealth and income from workers, pensioners, students and the less well-off to a small super-wealthy minority.

“If you redistribute that wealth by properly taxing that small minority at the top of our society, you will have more than enough resources to fund housing, health, childcare and alleviate the pressure of the cost-of-living crisis, without causing inflation.

“We have the resources to create a better society, where high quality, energy-efficient and affordable housing is available to all, where poverty is abolished, incomes and wealth are redistributed back to those who create them and where quality public services, free at the point of use, are accessible to all.”