Friday, November 19, 2010

IMF/EU Muscle Still Pounding on the Irish

Nouriel Roubini reports:
The Irish government’s heroic attempts at fiscal austerity may still not be enough: The IMF/EU team is likely to decide that the government’s economic growth forecasts for 2012-14 are too optimistic and recommend further austerity measures, though Irish politicians will fight tooth and nail to avoid a corporation tax raise.
Notice the IMF/EU emphasis on raising Ireland's corporate tax, which currently stands at 12.5%. Other governments hate this rate because it is far lower than their own and causes multi-nationals to locate a lot of their operations in Ireland.

Pfizer, Merck, Google and Microsoft are among the businesses with a major presence in Ireland.

The IMF/EU demand that Ireland raise its corprate tax should be seen has muscling action trying to force Ireland to honor higher global tax rates.

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