Why Ireland is Thriving: Lessons for Maine

Why Ireland is Thriving: Lessons for Maine

March 19, 2007 Posted by J. Scott Moody - No Comments

In a new article in the National Review, Chris Edwards explains how Ireland became an economic success story. He found that: “Irish government spending fell from more than 50 percent of GDP in the 1980s to 34 percent by 2005. For Europe that is a triumph of restraint, given that the average size of government across 25 EU countries today is 47 percent of GDP.”
Further evidence that spending drives taxes: “And Ireland has steadily reduced its tax rates. The top individual income tax rate was cut from 65 percent in 1985 to 42 percent today. The capital-gains tax rate was cut from 40 to 20 percent in 1999.”