Republic of Ireland Economy

Ireland’s booming economy and high nominal per capita GDP is owed to US companies and wealthy US citizens moving to Ireland because of the low tax strategy Ireland began in the 1980s.

The Republic of Ireland was established in 1937. In 1948 Ireland withdrew from the British Commonwealth; it joined the European Community in 1973. Irish governments have sought the peaceful unification of Ireland and have cooperated with Britain against terrorist groups. A peace settlement for Northern Ireland, approved in 1998, was implemented the following year. Ireland is 79% Catholic.

In 2018, Nominal GDP was $372.7 billion. Nominal Per Capita GDP was $76,098.  Inflation is 1.2%, Poverty is 8%. Unemployment is 4.4%.

Ireland has a population of 4.9 million and a land area 32,595 square miles. Labor force is 2.3 million Utilization is 74%. Labor force by occupation is agriculture 5%, industry 11% and services 84%. Average salary is $3,694 per month.

GDP by sector is agriculture 1.2%, Industry 38.6% and services 60.2%.

Min Industries are Pharmaceuticals, chemicals, computer hardware, software, food products, beverages, brewing, medical devices, Ease of doing business is 23^rd.

Exports were $219.7 including machinery, equipment, computers, chemicals, medical devices, pharmaceuticals, foodstuffs and animal products sold to the US 27.2%, UK 11.8%, Belgium 11%, Germany 8.2%, Switzerland 5.1%, Netherlands 4.9%, France 4.4%, China 4.2%

Imports were $98.13 billion including data processing equipment, machinery, equipment, chemicals, petroleum, petroleum products, textiles and clothing imported from the UK 22.5%, US 20.4%, France 12.5%, Germany 8.9%, China 5.9%, Netherlands 3.1%, Italy 2.1%, Belgium 1.8%

.

https://en.wikipedia.org/wiki/Economy_of_the_Republic_of_Ireland

Ireland’s corporate tax rate is 12.5%. Many US companies have large subsidiaries operating in Ireland and many wealthy US citizens have moved to Ireland to escape high individual income tax rates in the US. This explains the relative wealth of Ireland compared to other EU countries.

In 1986, the US individual income tax top rate was 50% and the effective tax rate was 33.1%. 

Ireland's standard corporate tax rate was reduced from 40% to 12.5% (phased in from 1996–2003) The US top corporate tax rate remained at 35% until 2018 when it moved to 21%.

https://www.investopedia.com/ask/answers/060316/why-ireland-sometimes-referred-tax-haven.asp

The top 50 companies in Ireland include 25 US companies with operations in Ireland include Apple, Microsoft, Oracle, Dell, Google, Facebook, Amazon, Merck, Pfizer, Abbott, Baxter, McKesson, Ingersoll-Rand and others who contribute 70% of Ireland’s GDP.

https://en.wikipedia.org/wiki/Corporation_tax_in_the_Republic_of_Ireland

This should be a lesson to all European countries to lower their corporate and individual taxes to attract investment. This is the only thing that works. It should be easy if they reduce government spending and privatize all industries.

Norb Leahy, Dunwoody GA Tea Party Leader