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bawolffyesterday at 11:56 PM2 repliesview on HN

> Why should Ireland undermine 13% of it's GDP

Undercutting other countries on tax policy tends to piss them off. So it comes down to whether the benefits of the policy outweigh the blowback.

The 13% of GDP figure can be a bit misleading as GDP from being a tax haven tends to help the average irish citizen a lot less than more traditional ecconomic activity.


Replies

anubisthetatoday at 12:27 AM

eh, other countries can improve their offering. It's a good thing. We punish companies when they collude to keep salaries low. So too should countries compete with attractive tax packages.

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alephnerdtoday at 12:12 AM

> The 13% of GDP figure can be a bit misleading as GDP from being a tax haven tends to help the average irish citizen a lot less than more traditional ecconomic activity

As I pointed out, if Ireland didn't adopt it's tech FDI policy which it did in the 1990s, it would be a much poorer country today.

Going from Libyan, Soviet, and Greek to Finland level living standards in 30 years was not guaranteed, and it was Ireland's business friendly policies is what ensured it became a tech hub today and didn't fall into the middle income trap - especially in 2008-12 when Ireland was also in the midst of a Greece style economic meltdown (remember the PIGS?)

Ireland was a developing country in the 1990s, and if they executed better than then much richer Western European states like Germany, France, the UK, and Canada then so be it.

> GDP from being a tax haven tends to help the average irish citizen a lot less than more traditional ecconomic activity.

I've been using HDI which isn't severely impacted by GDP per capita.

And even then, Ireland's median household income [0] is now significantly higher than the UK [1] despite living standard in the UK having been significantly higher than Ireland's until the 2010s because of Ireland's FDI policy.

> Undercutting other countries on tax policy tends to piss them off

Other EU member states such as Poland and Czechia also match Ireland's incentives when asked, which has helped both Czechia and Poland now catch up to historically richer France, Italy, and the UK.

[0] - https://www.cso.ie/en/releasesandpublications/ep/p-silc/surv...

[1] - https://www.ons.gov.uk/peoplepopulationandcommunity/personal...

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