Hey, look, it’s us again… or as others see us redux… June 28, 2011Posted by WorldbyStorm in Economy, Irish Politics, Uncategorized.
The issue of the Irish economy pops up in a discussion on Slate of the [very] few examples of where tax cuts have increased revenue.
The Irish case also offers little support for the idea that tax cuts always pay for themselves by goosing growth. The cut in the corporate tax rate did not aid Irish companies’ bottom lines so much as it attracted extraordinary amounts of foreign capital. International firms like Pfizer relocated their European headquarters to the country to take advantage of the low tax rates. All those new companies contributed to an expanded corporate tax base. (Now, Ireland, suffering from crippling debts, is scared to raise the tax rate, which might encourage the companies to leave.)