[eoin_murphy]

That and they probably just got a huge grant for putting their first translation in Irish...

But yes, the tax laws in Ireland are incredibly generous, if you're a corporation. I say this as a person just falling into the top tax bracket which means that while most of my wages are taxed at 21% or so (closer to 25%), any bonuses or future wage increases will be taxed at over 50% (once all the levies etc. have been counted in). And there's also the awareness that a significant percentage of that goes towards repaying bondholders in Anglo Irish bank or towards public services who refuse to restructure or update 50 year old work practices. (sorry, rant over)

There is also the fact that it's an English speaking country with a pool of relatively highly educated employees who are used to dealing with American businesses. Wages are relatively low compared to the US or England (well, London anyway) and you can have the best and brightest of Europe can relocate with no visa issues (once you can convince them to relocate to a rainy island in the North Atlantic)

[rpm4321]

Hey Eoin, couple of quick question for you if you don't mind. I know you're probably not a tax lawyer, but what's the personal capital gains situation like over there?

Also, just wondering what "morale" (for lack of a better word) is like now, given all the bailouts, budget crises, and even church scandals. All you hear about Ireland in the US media these days seems to be doom and gloom.

Is there a chance, given the public's hostile reaction to the bank bailouts and economic crisis, that Ireland could tack left and start rolling back its advantageous tax rates?

Thanks in advance.

[eoin_murphy]

Capital Gains Tax: I'm not a tax lawyer but there's good advice here: http://www.citizensinformation.ie/en/money_and_tax/tax/capit...

Morale wise, again I don't know. I'm currently out in India but when I left 6 months ago there was (I think) a sense of just shrugging the shoulders and getting on with life. At this point, more scandals, bailouts & controversies would just be adding to the pile. People will complain but there won't be any kind of mass movement in protest. We voted out the political party who were in power during the boom years and I see now that they're back to the second most popular party in the country.

I know a lot of young, very talented people don't see a future for themselves in the country, don't see the point in trying to fix a very conservative system and just leaving (this would be why we have a relatively low unemployment rate compared to say, Spain).

The only way we'll roll those rates back is if the EU forces the changes. The public aren't angry with companies or multinationals. They're angry with private banks, a government which made private debt public on the insistence of the EU and with the EU which is forcing extreme hardship to repay other EU banks. Please note, I'm not saying the people or the Irish government is not culpable for the current crisis - particularly the banking regulator - but rather just trying to outline what the public see as being the problem.

[pbiggar]

The public loves the tax rates, because of announcements like this. Creating jobs is what stimulates the economy, and the tax lost from corporate tax shenanigans are more than made up for by the creation of thousands of jobs from US multi-nationals setting up shop in Dublin.

[roel_v]

"Is there a chance, given the public's hostile reaction to the bank bailouts and economic crisis, that Ireland could tack left and start rolling back its advantageous tax rates?"

It won't be the public's hostile reaction that will raise Irish taxes, but EU pressure.

[patrickk]

I posted this comment on Reddit a while back in response to another person's question, trying to sum up the whole situation with the Irish bank bailout (a bit wordy and a bit of a rant I'm afraid, but hopefully informative).

The former Irish Minister for Finance, Brian Lenihan (now deceased), was coerced into putting together a dodgy back-room deal on the night of September 29 2008 where all senior Irish bank debt was guaranteed. So the Irish state was on the hook for all the insane property development loans that went on during the boom years. This single, disastrous meeting is the reason Ireland is fucked. The country ran budget surpluses up til that point. A misleading report from Merrill Lynch London office and some bullshit from senior Irish bank chiefs ensured that the deal was done.

You can read the full story here: http://www.vanityfair.com/business/features/2011/03/michael-... There was a separate piece of legislation enacted so that depositor's funds would be guaranteed up to the value of €100,000. The bank debt write down and the depositor's guarantee could've easily been done separately, but the Minister's hand was forced.

There was an article about it a little while ago shich i cant dig up, but relatively, your obligations were HUGE

Absolutely staggering proportions. Before this nonsense started in 2008, our Government debt-to-GDP ratio was ~80% - high but sustainable, afterwards it skyrocketed to 120% (unsustainable). The only other economies in this territory were Iceland, who reneged on their obligations, and Greece, who will restructure as sure as night follows day. Also before 2008, the country ran budget surpluses, it's not like the country was fiscally irresponsible like Greece.

Is that still the case? Have things gotten angrier at all recently, or is this just a quiet resolution and no one is protesting much?

What happened was we booted out the political party who were responsible for the mess - they were in bed with property developers (got political donations etc) and so did nothing to keep the construction sector in check, resulting in an out of control property bubble. When the recession kicked in, we elected in another coalition of 2 different political parties - the MAIN promise of theirs in the run up to the election was to "burn the bondholders". They utterly failed in this regard. Irish politicians are little bitches who want to be seen as "good little Europeans" and get a pat on the head from the big boys in Brussels (EU seat of power). There's no sense of saying "fuck it, we're not taking this shit, the Irish people deserve better". The injustice of the way this mountain of debt is being heaped on the people, forced to bail out our retarded banks and getting austerity on top of that is unbelievably galling. I heard that a trader on the west coast of America made something like $700m on betting that the Irish government would 'honour' our debt. Ridiculous. People are extremely angry underneath the surface. In Ireland, we tend to bottle up the rage instead of the riots you see in the southern European countries. What will happen is my generation (I'm 25) will largely emigrate to the UK, Australia and Canada. Some will eventually return, more won't. That is the traditional Irish "valve" to release the pressure - emigration, not riots.

The loss of sovereignty is a massive blow to the Irish psyche. There's an old cliche in Ireland - "700 years of oppression", i.e. alluding to the fact that we were under the thumb of British royalty for centuries. The first real taste of serious wealth that Ireland had in it's free history, and it was pissed away by our own corrupt politicians, and now Berlin and Brussels gets to dictate what we do.

Having said all that, many people are too comfortable and non-activist for anything crazy to happen, like forcing the government to write off the property gambling debts, riots, or leaving the Euro-area. I do think the Irish state will be forced to write down some/all of the debt eventually, as we can't export fast enough to grow GDP to pay off the debt. I kind of wish people would freak out, go fucking ballistic and get this shit sorted quickly (the debt that is), cos we're a great little nation and there's some great factors we have in our favour (young, english speaking workforce, highly educated, pro-business, really low corp. tax, etc.) that would mean the economy would quickly take off again if we could get this fucking debt off our back.