How are the mighty fallen! Collector of bad and doubtful debts. - James Joyce,
UlyssesAxiom: Extremely low or no corporate taxation attracts businesses, which create jobs, which spur economic growth, which leads to strong and stable societies. Doubt it? A couple of years ago, you would have been pointed to the glowing example of this axiomatic truth, the much ballyhooed Celtic Tiger, the Miracle of Ireland. Emerging, we were told, from generations of backwards European welfare state mentality, the Irish had landed on the fundamental truth of neoliberal economic policies, and the country was booming. There, they cried! Look there! Do you see how your leftist and liberal principles are destroyed in practice? Do you see how Ireland surges into general prosperity by following the dictates of the Chicago School? Can you admit now, oh backwards leftists, that you are wrong, so very wrong?
It turns out the whole thing was a sham.
Now it is everybody falling ass over teakettle to "save" the Celtic Tiger - the European Commission, the European Central Bank, the International Monetary Fund. The Celtic Tiger takes on an increasingly Greek glow, is mentioned in the same breath as the backward Greek economy, disastrous. Every bank in the country is on or over the precipice. The government pretends it can rescue them without being rescued itself, as its deficit nears a third of GDP. A fucking third of GDP! If you were worried about the US deficit, it should be noted for comparison purposes that it stands at approximately 7% of GDP. Let me repeat: Ireland's budget deficit stands at 32% of GDP. The Celtic Tiger! The philosophy of low taxation. The fiscal well-being of the society in near collapse, in just a few short years of neoliberal stupidity.
And this would be enough to teach the ideologues that their axiom is false, yes? No. Of course not. They're fanatics of the worst kind. Here's what the New York Times tells us:
Germany in particular is pushing Ireland to raise its corporate tax rate of 12.5 percent, one of the lowest in the euro zone, to reduce its deficits. But Dublin is resisting this sort of intrusion in its affairs, Mr. Lucey said. A tax rate that Germany and other European nations see as unfair competition is viewed in Dublin as a critical element in its economic success, past and future.
It's a critical element of their "economic success!" They have a deficit of 32% of GDP, and low corporate taxation is a "critical element of their economic
success!" (One does not fail to note that the New York Times stoops so low as to suggest other motives for Germany's reasonable request: raise taxes to lower your deficit. Oh, the neoliberals at the Times suggest, in an off-hand way, the Germans are really worried about the competition. From Ireland! It is to laugh. We should note that the Germans were fretting recently about budget deficits in the range of 3.5% of GDP.)
There it is, ladies and gentlemen. Your Irish Miracle, the shining example of neoliberal low-taxation economics. The Irish Miracle, in smithereens.
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