DUBLIN, Ireland: Ireland must tax property more effectively if it wants to achieve fairer wealth distribution, according to leading economist John FitzGerald.
Speaking in an interview with Newstalk radio, FitzGerald stressed that most household wealth in Ireland is tied up in housing, making property taxation the most direct way to address rising inequality.
He noted that homes account for nearly 70 percent of Irish household net wealth, compared with just over 60 percent across the euro zone. This heavy reliance on property as the primary store of wealth, he argued, has intensified inequality over the last decade. Younger generations, locked out of the housing market by soaring prices, have watched as the value of homes owned by their parents and grandparents has continued to climb.
FitzGerald said the data shows just how sharply ownership patterns have shifted. A decade ago, the bottom 50 percent of households collectively held about a quarter of the country's housing wealth. Today, their share has fallen to just 14 percent—a drop of ten percentage points. At the same time, the wealthiest 10 percent now control roughly one-third of all housing wealth, leaving many others without homes at all.
"The only way to redistribute wealth more fairly is to raise property taxes," he said. "Wealth is very unevenly distributed in Ireland. It may be somewhat more even than in many other European countries, but it is still far from fair. And unlike the United States, where people hold large amounts of stocks and shares, the main form of wealth here is housing."
According to FitzGerald, taxing property is not only the fairest approach but also the most targeted. "If you tax property, you are taxing those fortunate enough to own homes. In particular, you are taxing the wealthier," he said.
Ireland already has a local property tax, which is collected by Revenue and then distributed to local authorities. FitzGerald described the system as efficient, with minimal collection costs, but criticized successive governments and councils for failing to adjust rates in line with the dramatic rise in property values. This reluctance, he argued, has left the tax increasingly out of step with the realities of Ireland's housing-driven wealth distribution.
By refusing to reform property taxation, policymakers risk allowing wealth inequality to deepen further, FitzGerald warned. Without intervention, younger generations will continue to be excluded from the housing ladder while the concentration of property wealth at the top remains unchecked.
