19 May 2021
The Institute receives an annual grant-in-aid from the Department of Public Expenditure and Reform to support the scientific and public interest elements of the Institute’s activities; the grant accounted for an average of 30 per cent of the Institute’s income over the lifetime of the last Research Strategy. [...] This work was carried out with funding from the ESRI’s Tax, Welfare and Pensions Research Programme (supported by the Department of Public Expenditure and Reform, the Department of Social Protection, the Department of Health, the Department of Children and Youth Affairs and the Department of Finance), which is gratefully acknowledged. [...] However, increases to the standard rate of income tax and the lower (0.5 and 2 per cent) rates of the USC affect those in the top two deciles less than others in the top half of the income distribution. [...] This is because more of their income is subject to the higher rates of income tax and the USC, and therefore the impact of increases to the lower rates is smaller. [...] While the burden of higher rates of LPT would fall on current owners in the short run, the rates would likely be capitalised into the price of residential property in the longer run (Gravelle, 2007).16 As a result, higher rates of LPT would be likely to dampen the growth of house prices, particularly that linked to credit growth and purchases driven by the anticipation of capital gains.