Harney Defends Ireland's Low Taxation Policies

by Jason Gorringe, Tax-News.com, London

22 May 2003

Irish Minister for Enterprise, Trade and Employment Mary Harney recently announced that she would oppose any proposal by the European Convention on the Future of Europe to harmonise the EU's taxation regimes.

In recent years, Ireland has significantly lowered its business taxes, leading to substantial economic growth in the 1990's, which earnt it a reputation as "the Celtic Tiger". These measures were successful in attracting large multinationals to Ireland, particularly in the field of IT. Harney also pointed out how the low tax regime had boosted employment, and criticised other EU states for failing to boost jobs by not cutting labour taxes.

Harney made her comments to the Taxpayers' Association of Europe after picking up the 2003 'Taxpayers' Award' for the fifth time.

The Taxpayers' Association of Europe was founded in Luxembourg in 1969 and its mission is to "protect the citizens of Europe from the burden of excessive taxes and exaggerated bureaucracy and to prevent the introduction of new taxes." The Taxpayers Association of Europe also fights for simpler and fairer tax laws, and against the wasting of public funds.

Citing the reasons why Harney was in receipt of the award, the Taxpayers' Association explained that the: "Deputy Prime Minister of Ireland and Minister for Enterprise, Trade and Employment, is in favour of continuing fiscal reforms and economic growth and has consistently pursued the Irish policy of reform," adding: "Ireland has recognised that economic growth can only be achieved with low taxes."

The Association went on to outline Harney's achievements whilst in office:

"During her time in office the personal tax rates were cut to 20% at the standard rate and cut to 42% at the top rate and corporation tax has been lowered to 12.5%. She has created a context in Ireland that makes investment attractive. The fiscal reform policy in Ireland is exemplary and provides proof that lowering taxes gives rise to economic growth and higher tax revenues."

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