Thursday, January 17, 2008

Lower taxes, get more entprenuers

Ireland is on the move thanks to tax cuts.

Government help for Irish entrepreneurs grew out of an overall economic policy devised in 1987 that reduced personal taxes, said Kevin Sherry, a director of Enterprise Ireland who specializes in start-up companies.

Income tax rates in Ireland today are 20 percent on the first $50,000 of income and 41 percent on income above that. But there are value-added taxes of 21 percent levied on all goods and transactions, with the exception of health and medical services, children’s clothing and food.

The tax on corporate profits, though, is 12.5 percent, which is an incentive to own a business. And government helps out. “We have helped over 300 people or groups in the last dozen years or so,” Mr. Sherry said.

For more on the "Celtic Tiger," read BHI senior economist Ben Powell's paper on Ireland prepared for the Goldwater Institute last year.

A strange map indeed

California should be a member of the G-8!