Sir, – Eoin Burke-Kennedy (Business, November 15th) poses an interesting question: "Could a once-off wealth tax pay for better public services?".
The short answer is probably yes. But that ignores the conflicting impacts such a tax decision could have on other parts of the economy.
The National Economic and Social Council in discussing wealth tax, in its second report in 1974, argued that “in assessing the broad economic and social implications of any tax system, achieving equity, reducing inequality and promoting greater economic efficiency and growth, are key considerations”.
However, the report warned that “...these objectives may be in conflict with each other – a major step towards reducing inequality in the distribution of wealth may have adverse effects on the rate at which new wealth may be created”.
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– Yours, etc,
TOM FERRIS,
Blackrock, Co Dublin.