The Texas GOP Could Learn From The Irish
'The fact is, it's tax.' Blimey, O'Reilly, you never said five truer words (William Rees-Mogg, Times, via Brothers Judd)
Last week David Wighton, of the Financial Times, had lunch with Sir Anthony O’Reilly in Manhattan; the interview was published in Saturday’s FT magazine. It is all well worth reading, particularly for newspapermen; O’Reilly believes that newspaper prices in the UK market are too low. His own Independent ought to be priced at £1, rather than the present 70p; the FT ought to be £1.50, not £1.
Yet the key passage refers to tax. O’Reilly’s view is that the main reason for the Irish economic “miracle” has been the low level of corporate tax in Ireland. He is working to persuade the UK Government to reduce the rate of corporation tax in Northern Ireland to that of the south; that is, from the UK’s 30 per cent to the Republic’s 12.5 per cent. He comments that the Irish miracle is not “because the pubs are great, the golf is great and the climate is, well . . . the fact is, its tax.”
This is, indeed, one of the political truths that politicians ignore at their peril. O’Reilly’s “the fact is, its tax,” is just as valid as Bill Clinton’s “it’s the economy, stupid”. Of course, from the British point of view, there can be no question of cutting the Northern Ireland rate of corporation tax without cutting the UK level. If 12.5 per cent is good for the Republic — and it is — then indeed it would also be good for Northern Ireland. If it would be good for Northern Ireland it would be equally good for England, Wales and Scotland. Not only good, but essential.
Most politicians have little understanding of tax. They think it is easier to tax business because global businesses do not have votes. They do not realise that Ireland has found that lower tax rates produce higher yields.
Maybe we could get this O'Reilly guy to come pay a visit to Governor Perry, and all of the Republican defenders of the Perry/Sharp business tax.
MORE: Lunch with the FT: The Life of O'Reilly (David Wighton, FT)
Posted by Kevin Whited @ 06/14/06 08:38 | Other | Technorati
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