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 23rd.
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%
.
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%.
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.
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
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