Tuesday, April 18, 2006

The Irish - they deserve it

Ireland's decision to slash its corporate tax rate to 12.5% is one of the great policy decisions of post-Maggie period.

The TaxCutter says that the resultant economic growth is exactly what the Irish deserved for having the balls and brains to initiate such a free-market reform whilst the rest of Europe wasted the last decade on Blair, Berlusconi, Chirac, Schroeder etc.

So there's a letter in the FT today http://news.ft.com/cms/s/e822cab8-ce76-11da-a032-0000779e2340.html dissing tax competition. If you can get over the factual inaccuracies have a think about the issues.

What's wrong with tax competition? Any other supplier to me of goods and services has to compete on a number of grounds, including price, why should the government's provision of health, security and education services be any different.

The Tax Justice network behind the letter might also want to think about what Tax Justice should mean. How just it is that Labour have increased the number of income taxpayers in the UK by over 3.5 million, that you can pay income tax by working just 20 hours a week at the minimum wage, and that millions of people will face a big tax bill just by the misfortune of dying?

2 Comments:

At 6:59 AM, Blogger Croydonian said...

Our Hibernian friends do have the advantage of being hosed down with money from Brussels, which does rather skew things, as the more they get from there, the less they have to levy in taxation.

However, tax rate competition is a good thing.

 
At 11:21 AM, Blogger The TaxCutter said...

Indeed - why should Ireland continue to be subsidised by the rest of the EU

But that's also the sort of argument Chirac and Schroeder have tried to use vs Eastern European States to try and force them to increase their rates. In truth the additional revenues Ireland generates from its its tax cuts relate to very different types of business than the subsidised ones AND vastly exceed the EU subsidies.

 

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