Aidan Regan has been reading an EU report and sent us this interesting tidbit about the shaky foundations behind our government’s rhetoric of recovery.
It goes like so:
“What is leading to an improvement in the Irish fiscal balance? If you listen to the government it is their “tough austerity choices”.
This report, just published by the European Commission, debunks that myth. Deficit improvement is almost entirely explained by windfall corporate taxes. Corporate taxes are to Ireland what oil rents are to the gulf states.
This is what will fund the giveaway tax cuts in the next election. Like it or loath it – but absent of US investment, Ireland would be no different to Portugal or Greece.”
Take a read of the report here for yourself. Put the coffee on.
You can follow Aidan’s research on his blog.