Is there a future for Anglo-Irish taxes in Europe?

The Irish government are correct when they acknowledge that Ireland is no longer seen as a team player in Europe. But, they fail to recognise or act on why this is the case. The unwillingness of the Irish state to re-consider its low tax strategy of economic and industrial development is the primary cause of consternation. Most Europeans cannot understand why the Irish government are willing to engage in years of harsh fiscal austerity that will have a serious impact on those with low incomes yet unwilling to ask the corporate sector to make an additional contribution to economic recovery. The internal debate in Ireland also reflects this. It is perfectly legitimate to call for the abolishment of wage setting institutions that protect the lower paid or to cut social welfare rates but never to examine the possibility of introducing a new third rate of tax on high income earners. Or, consider that the profits of Microsoft Ireland rose by 73 percent last year. Yet nobody questioned whether such successful companies might make an additional contribution to the public exchequer. Ireland continues to think more Anglo-Irish than Euro-Irish when it comes to public policy and until this changes we can expect little solidarity from the few remaining progressives in Europe.

One response to “Is there a future for Anglo-Irish taxes in Europe?

  1. But where does this pressure come from to keep Ireland as a tax haven? While we might like to think we have a functioning democracy, it is a little too much of a coincidence that the three main parties all agree in maintaining deference to the business and corporate sector.

    Are you familiar with what happened in Australia last year when Kevin Rudd presented a policy to tax mining corporations?

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