Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Government Buildings, Dublin. Minister for Finance Paschal Donohoe and Minister for Public Expenditure and Reform, Michael McGrath on budget day. Rolling News

Paul Murphy The case is growing for a ‘Covid Tax’ on the rich to avoid future austerity

RISE TD Paul Murphy is part of a new Europe-wide campaign for a ‘Covid Tax’, to avoid saddling people with years of austerity after the pandemic.

AS THE COST of the coronavirus crisis in Ireland and globally mounts, the question of ‘who will pay’ is going to come centre stage.

This week, as part of Budget 2021, the government refused to restore the €350 Pandemic Unemployment Payment, despite moving to Level 3.

The reason? It’s “not sustainable”, in the words of the Taoiseach.

Minister for Finance, Paschal Donohoe has predicted a deficit of over €21 billion this year. A large deficit next year is also likely.

Of course, this is not just in Ireland, it is a Europe-wide and global phenomenon, as the World Bank forecasts that the world economy will shrink by over 5% this year. 

New normal brings new inequality

The real danger is that after barely emerging from the last capitalist crisis, we face a decade more of austerity, starting before the pandemic is even over.

The “we all partied” of 2008 will be replaced by “It’s all about individual responsibility now”. The end result will be the same – cuts to vital public services, the extra tax burden on working people and all of the consequences in terms of deprivation, poverty and mental health which we are unfortunately familiar with.

Once again, action to rapidly halt environmental destruction and reduce carbon emissions will likely see further delays.  Socialists reject the idea that we have to repeat that experience.

The enormous wealth in our societies has not simply disappeared. In fact, billionaires increased their wealth from April to July by 27.5%, with their total wealth increasing to over $10 trillion!

They got richer by betting on the stock exchange while workers around the world were thrown out of jobs. The owner of Amazon, Jeff Bezos, is the biggest winner from the pandemic, with his net worth now exceeding $200 billion as Amazon shares soared due to the shift to online shopping.

The Covid Tax

That is why activists from across Europe have come together to launch a Europe-wide campaign to apply a ‘Covid Tax’ on the wealthy and big business. I had the privilege of attending (over zoom) a launch meeting of this campaign last week. 

The proposal, which I have co-signed sets out:

The crisis of the Covid-19 has forced European states to a series of exceptional expenses to cope with an extraordinarily serious health and social situation.

The short-term suspension of the implementation of the Treaty of Stability and Growth has allowed to increase the levels of deficit without the threat of sanctions by the European institutions.

However, the question now is, who will pay the bill: if the indebtedness of the States will lead to new plans of austerity and adjustment, or if the privileged will be forced to pay.

It is therefore urgent to put on the political agenda the distribution of wealth, the idea that high incomes and large estates should be taxed for the benefit of the collective interests.

It is a campaign supported by left-wing MPs and MEPs from more than ten countries in Europe, trade union activists and leaders, as well as representatives from campaigning organisations like Attac. Research on the proposal has been carried out by left-wing economists involved in the Campaign for the Abolition of Third World Debt and others. 

The proposal includes four different emergency taxes in order to make the rich and big corporations pay for this crisis: Taxing high corporate profits of major corporations; A wealth tax on the super-rich; A tax on the assets of investment funds; And a tax on the transfer of assets.

In addition, it calls for a cancellation of all debt linked to tackling the causes and effects of the pandemic, the suspension of state assistance to companies engaging in tax avoidance and breaking with the straitjacket of neoliberal economic policy in the EU.

Although the implementation of these policies in a coordinated way across Europe would clearly be preferable, even one country implementing these policies would dramatically change the political terrain across the continent.

Applying these to the Irish economy, the amount of money that could be raised is astounding. A 3% extra tax on corporate profits exceeding €5 million would raise over €2 billion.

A 3% wealth tax on the richest 1% of people in Ireland, who own an average wealth of over €6 million each, would raise €3.6 billion. 

A 1% tax on the assets of investment funds and holding companies, excluding pension funds, would raise €22 billion! Finally, increasing the tax (Stamp Duty) on transfers of assets, excluding shares and residential property, would raise €600 million.

In total, these measures could raise over €28 billion – covering the deficit and leaving €7 billion left-over. How it is spent is vital. It should be invested in major public investment to transition to a net-zero carbon economy by 2030. 

For example, in free, green and frequent public transport for all, in building an Irish National Health Service, in building public housing and in creating thousands of jobs in the care economy (including education, childcare, and elderly care) and renewable energy.

The chorus of ‘it’s impossible’

Of course, the usual array of right-wing politicians will line up to say all of this is simply impossible. They are the same ones, like Leo Varadkar, who one night display a sudden concern for poverty and the fate of people on the PUP and two nights later vote against the restoration of it. 

Simply accepting Ireland’s position as a tax haven for multinational corporations and the rules of global capitalism, means that the only “difficult choices” that are ever acceptable are those that hit working people. Part of the rationale for the ‘Covid Tax’ is to urge people to break out of that straitjacket of capitalist thinking, by demonstrating the vast amounts of wealth held by the very richest.

The pandemic has highlighted the inequalities in our society and the underinvestment in our public services. Decades of underfunding have left our health services hanging by a thread, and our classrooms among the most overcrowded in Europe.

This should be a wake-up call, that we cannot go back to the neoliberal capitalist model. Instead, we need to be prepared to take on the super rich tax avoiders, challenge the rackrenting landlords and tackle the big business polluters.

For socialists, it is only part of the struggle to reshape society in the interests of the majority – by taking control of the wealth-producing sections of the economy out of the hands of the few and into the control of the many.

Paul Murphy is a RISE TD for Dublin South-West, part of the Solidarity – People Before Profit grouping in the Dáil. Twitter @paulmurphy_TD.

voices logo

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
68 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Carmella Mcgilvery
    Favourite Carmella Mcgilvery
    Report
    Dec 12th 2015, 1:31 PM

    if television adds 10 pounds …does ryan tubridy even exist ??

    325
    Install the app to use these features.
    Mute Seth Mcguinness
    Favourite Seth Mcguinness
    Report
    Dec 13th 2015, 12:25 AM

    He exists as pure energy just for his wages.

    13
    Install the app to use these features.
    Mute Luke Sarpish
    Favourite Luke Sarpish
    Report
    Dec 12th 2015, 1:03 PM

    Mark Whalburg didn’t even to get to sit down before chopstick Tubridy asked about his Irish roots.

    280
    Install the app to use these features.
    Mute Peter McGlynn
    Favourite Peter McGlynn
    Report
    Dec 12th 2015, 1:51 PM

    Sure we claim them just because their great great aunt was raped by an Irish slave-owner ffs.

    36
    Install the app to use these features.
    Mute Peter McGlynn
    Favourite Peter McGlynn
    Report
    Dec 12th 2015, 1:51 PM

    Great great grandmother obviously :-).

    22
    See 2 more replies ▾
    Install the app to use these features.
    Mute Free comment ratings
    Favourite Free comment ratings
    Report
    Dec 12th 2015, 2:02 PM

    Thanks for clearing that up peter.

    141
    Install the app to use these features.
    Mute Gerry Campbell
    Favourite Gerry Campbell
    Report
    Dec 12th 2015, 2:50 PM

    Ah he probably tipped the two of them , ur ok..

    27
    Install the app to use these features.
    Mute OneTrueVoice
    Favourite OneTrueVoice
    Report
    Dec 12th 2015, 1:03 PM

    The Late Late Show with Ryan Tubridy.

    Ireland’s answer to I’m a Celebrity Get Me Out Of Here.

    240
    Install the app to use these features.
    Mute John Smith
    Favourite John Smith
    Report
    Dec 12th 2015, 1:34 PM

    Ireland’s Alan Partridge.

    78
    Install the app to use these features.
    Mute DonalC
    Favourite DonalC
    Report
    Dec 12th 2015, 1:43 PM

    Brendan O Connor was absolutely horrific as well. People let D’Arcy blind them into forgetting how crap the two of them were. Just rewatch that Pussy Riot interview and tell me O’Connor was doing a decent job!

    Irish TV is just dreadful in general

    180
    See 4 more replies ▾
    Install the app to use these features.
    Mute Hypernova
    Favourite Hypernova
    Report
    Dec 12th 2015, 2:29 PM

    In fairness Donal,I don’t think anyone on Earth would be able to have a good interview with Pussy Riot.They were a small bit strange and the language barrier didn’t help.

    43
    Install the app to use these features.
    Mute Myles Sheehan
    Favourite Myles Sheehan
    Report
    Dec 12th 2015, 3:56 PM

    Brendan O’Connor’s interview with Liam Gallagher was one of the worst things I’ve seen any any talk show. He’s such a cringey bollocks.

    40
    Install the app to use these features.
    Mute Tony Le Blanc
    Favourite Tony Le Blanc
    Report
    Dec 12th 2015, 4:32 PM

    Really John? That’s like trying to decide which animals dung you would rather have thrown at you.

    23
    Install the app to use these features.
    Mute Seán Domhnall O'Sullivan
    Favourite Seán Domhnall O'Sullivan
    Report
    Dec 12th 2015, 8:36 PM

    Pat Kenny with Pete Doherty was the one that sent me over the edge. Truly awful even if I’d ever defend rte, which I wouldnt

    13
    Install the app to use these features.
    Mute Linny
    Favourite Linny
    Report
    Dec 12th 2015, 1:20 PM

    Every time Tubridy said “You guys”, I died a little inside.

    208
    Install the app to use these features.
    Mute Alan Biddulph
    Favourite Alan Biddulph
    Report
    Dec 12th 2015, 2:08 PM

    So tell me about your kids, are they normal? Amazing journalistic skills from the the main man.

    95
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:09 PM

    If Tubridy is talented, I’m Santa Claus!

    91
    Install the app to use these features.
    Mute Periguin
    Favourite Periguin
    Report
    Dec 12th 2015, 1:13 PM

    Dear Fred,
    I’ve been a very good boy this year……..

    66
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:20 PM

    Dear Periguin, I will give you all you wished for this year……

    First prove to me Tubridy is “Talented”

    Ho! Ho! …..Ho!

    40
    See 2 more replies ▾
    Install the app to use these features.
    Mute Sinead Hanley
    Favourite Sinead Hanley
    Report
    Dec 12th 2015, 1:27 PM

    When the likes of Tubridy and that dreadful Xpose crew meet a Hollywood Star, I want to barf.. Have you got Irish roots/did u have the craic in an Irish pub/would u like to make a film in Ireland/when are you coming back.. These questions are patronising.. I am sure the stars in question find them boring too

    148
    Install the app to use these features.
    Mute Ben Connolly
    Favourite Ben Connolly
    Report
    Dec 12th 2015, 2:59 PM

    Tubridy asked them are your kids normal omg what a question

    58
    Install the app to use these features.
    Mute Patrick James Walsh
    Favourite Patrick James Walsh
    Report
    Dec 12th 2015, 2:36 PM

    Tubridy is just so plain cringe inducing, embarrassing to watch him make an idiot of himself, night after night, surely there is someone reasonably competent in RTE to host a chat show without having to watch this car crash tv.

    55
    Install the app to use these features.
    Mute Supernova
    Favourite Supernova
    Report
    Dec 12th 2015, 3:19 PM

    I had to turn it off.. To cringey!

    35
    Install the app to use these features.
    Mute Cupid Stunt
    Favourite Cupid Stunt
    Report
    Dec 12th 2015, 1:48 PM

    Isn’t it great to be known as a nation of drunks.

    44
    Install the app to use these features.
    Mute Martin Healy
    Favourite Martin Healy
    Report
    Dec 12th 2015, 3:35 PM

    Ryan turbridy he’s as sincere as a prostuitute’s kiss

    41
    Install the app to use these features.
    Mute Tony Le Blanc
    Favourite Tony Le Blanc
    Report
    Dec 12th 2015, 4:35 PM

    Tubridy; Irelands answer to a question nobody has ever asked.

    36
    Install the app to use these features.
    Mute bacoxy
    Favourite bacoxy
    Report
    Dec 12th 2015, 2:24 PM

    Where is the story about Paul Murphy and the FOI request from Irish water gone? Why have ye removed it?

    35
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:24 PM

    Mr. Tubridy reminds me of a Skoda with alloy wheels, pardon me if I sound a little biased.

    24
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:26 PM

    I meant the 70′s Skodas, Not too many reds now boys and girls, or your wishes wont come true.

    Merry Christmas………

    23
    Install the app to use these features.
    Mute Periguin
    Favourite Periguin
    Report
    Dec 12th 2015, 1:27 PM

    Lada comes to mind, with a sunroof and heated rear window.

    25
    See 7 more replies ▾
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:31 PM

    Thats what I meant>>> DOH…

    You’ve been a very good boy Periguin………Now… besides removing a stick insect from the National Broadcaster…..What would you like for Christmas?

    15
    Install the app to use these features.
    Mute Periguin
    Favourite Periguin
    Report
    Dec 12th 2015, 1:39 PM

    ummm, world peace and a decent political structure and represntatives. Impossible, i know, but.

    21
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 1:58 PM

    You’re right, Impossible, meanwhile here is a Ryan Tubridy colouring book with markers, shouldn’t take you too long to fill in………….

    18
    Install the app to use these features.
    Mute Richard McCarthy
    Favourite Richard McCarthy
    Report
    Dec 12th 2015, 2:24 PM

    Glad you cleared that up Fred,for the record the 152 hi tec Skoda Octavia 2.0 L TDI combi L@K is one mean machine,best value for money car around bar none,no wonder the taxi drivers at Stansted airport prefer them.

    15
    Install the app to use these features.
    Mute Fred Astare Astare
    Favourite Fred Astare Astare
    Report
    Dec 12th 2015, 2:36 PM

    Ehhh. I had one, you are right, a great yoke, unfortunately I got it mixed up with my past life as Periguin pointed out the Czech/Russian LADA, which in all honesty were post war cans of proverbial P@ss,

    13
    Install the app to use these features.
    Mute molly coddled
    Favourite molly coddled
    Report
    Dec 12th 2015, 4:30 PM

    What do you call a Lada at the top of a hill?….a miracle.

    15
    Install the app to use these features.
    Mute Periguin
    Favourite Periguin
    Report
    Dec 12th 2015, 5:51 PM

    Nah, ready to start.

    5
    Install the app to use these features.
    Mute Denise Friary
    Favourite Denise Friary
    Report
    Dec 12th 2015, 1:39 PM

    That Turdy is a bad example of a man I ever did see.

    21
    Install the app to use these features.
    Mute Periguin
    Favourite Periguin
    Report
    Dec 12th 2015, 1:42 PM

    I does be always listening in english grammar class and do be doing all my homework.

    51
    Install the app to use these features.
    Mute Bart Renolds
    Favourite Bart Renolds
    Report
    Dec 12th 2015, 3:18 PM

    Tubbs is rte ‘s love child

    18
    Install the app to use these features.
    Mute lavbeer
    Favourite lavbeer
    Report
    Dec 12th 2015, 2:11 PM

    Tubridy is though evidence that we as a people can see the bigger picture and the better future by not holding the actions good or bad of his grandfather against him.

    Long may this continue.

    15
    Install the app to use these features.
    Mute Cupid Stunt
    Favourite Cupid Stunt
    Report
    Dec 12th 2015, 2:29 PM

    His grandad was in the ira but besides that tubs was in fianna fail, and paid hundreds of thousands of Euro for being an apologist for the govt. I’m glad I’ve never bought a tv license.

    32
    Install the app to use these features.
    Mute James Keane
    Favourite James Keane
    Report
    Dec 12th 2015, 7:45 PM

    Why can’t we get a proper presenter to do our number one talk show. I mean Kenny was ok but tubs is actually embarrassing and this season is his worst yet. D’Arcy actually does a worse job, which is sayin something too.

    11
    Install the app to use these features.
    Mute paul kelly
    Favourite paul kelly
    Report
    Dec 13th 2015, 3:21 PM

    If Ryan turd was a chicken curry….

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds