Here comes the new Irish Government – every bit as weak and spineless as the old one.
The latest move to harmonise tax rates puts that issue back on the European agenda, to the likely annoyance of the Irish government. Last night Mr Michael Noonan said all countries, including Ireland, would have to agree to any tax harmonisation. He said that Ireland had already signalled it was going to constructively engage on this issue. “That remains the case,” he added.
What this means is that the current Irish Government will engage in a process that will ensure that the low Corporation Tax level it enjoys will be sacrificed to the gods in Paris and Berlin, that’s the deal. Noonan is talking out of both sides of his mouth. On the one hand he is telling the public that Ireland will “defend” its low CT rate whilst simultaneously “constructively engaging” in a process designed to remove that tax advantage. It makes you wonder why anyone ever bothers to vote when those who are elected so obviously take little heed of the wishes of the voters.
As someone said “Stop voting, it only encourages them”.