tag:blogger.com,1999:blog-2826531655042170344.post3731632661150920660..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: €6 Billion From A Wealth Tax? Not with these sumsSeamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2826531655042170344.post-28084250704389013482011-02-03T14:40:14.223+00:002011-02-03T14:40:14.223+00:00Very good article.
I would add a few points.
T...Very good article. <br /><br />I would add a few points. <br /><br />The original Bank of Ireland report on wealth discusses unencumbered wealth. That does not mean that there isn't debt attached to an asset. <br /><br />Consider a property owner with an asset worth €10mm and debt attached of €7mm. He/She is worth €3mm. If that asset falls 33% he/she is worth negative €300k.<br /><br />It doesn't take an economic genius to infer from our great and good that they like a property and b. leverage.<br /><br />Suppose they really had €156 & 71% in real estate in 2006 and lets just assume that they were leveraged 2:1. Given we have c €80bn of loans lying around at NAMA it wouldn't be a crazy assertion. This would equate to €110 bn total assets and debt of €73 bn a drop of 33% (which is small in comparison to whats really happened) woudl result in this being wiped out entirely. Leaving €29bn total wealth to tax <br /><br />Tom O'Connor uses data from the UK FTSE to measure the value of our rich's equity holdings neatly forgetting that the ISEQ has lost nearly all its value.<br /><br />I could go on but the really scary conclusion of the most cursory analysis of the BOI report is that we may not have a "rich" class at all. As Marx said capitalism will ultimately destroy itself.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-31238576946253098492011-02-03T12:10:53.282+00:002011-02-03T12:10:53.282+00:00Remember the Greens and their 1cent tax on texts r...Remember the Greens and their 1cent tax on texts raising €1 billion?<br />Figures do not matter if your heart is in the right place.Anonymousnoreply@blogger.com