Tuesday, March 15, 2011

Dublin Down on Taxes

Said the Irish Prime Minister Kenny:
"I'd be glad of a bailout, if any."
"'Til you tax as we do,"
Replied the EU,
"For you we'll accrue not a penny."    

Irish eyes will be smilin' this St. Patrick's Day, if Dublin can secure an EU financing package to cover its deficits.  However, the 12.5% Irish corporate tax rate, an irritant to the other EU member states, has disrupted the negotiations.  France and Germany particularly would prefer that newly elected Prime Minister Enda Kenny move to end the tax disparity, which would  reduce the fiscal deficit as well as the perceived unfair competition for corporate locations.  For this latter reason of course, Ireland is most reluctant to comply.

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