Saturday, March 17, 2007

The emerald miracle

For those Saskatchewan residents who think this is about as good as it gets for the province...this is how it's done.

However, the key to Ireland’s success has been its excellent tax climate for business. In 1980, Ireland established a corporate tax rate for manufacturing of just ten percent. That low rate was subsequently extended to high-technology, financial services, and other industries. More recently, Ireland established a flat 12.5 percent tax rate on all corporations — one of the lowest rates in the world, and just one-third of the U.S. rate.

Low business tax rates have helped Ireland attract huge inflows of foreign investment. Given the country’s modest size, it boosts a high-tech industry second to none. Intel, Dell, and Microsoft are among the island’s biggest exporters. Ireland also hosts booming insurance, banking, money management, and pharmaceutical industries.

2 comments:

John Murney said...

Hi David.
Question: what is Ireland's national debt, and how or does it affect the emerald miracle? Your thoughts on this, please!

David MacLean said...

According to this article:

http://www.finfacts.com/irelandbusinessnews/publish/article_10002587.shtml

Irelands national debt is now the equivalent of 8 months of tax revenue. Interest payments on the debt are now around a fifth of what they were a decade ago.

I'd say that is outstanding progress.

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