Tax take going to pampered public sector

FERGUS Finlay (Opinion, Nov 29) takes on what he calls “the myths and mantras” around raising taxes in a time of recession.

He points out that our taxes are third lowest in Europe in terms of tax/GNP ratio. He promotes the idea that taxing is preferable to cuts as a way back to prosperity. He points out that Germany, the most successful economy in Europe, has the highest tax ratio to GDP. All of his ruminations just go to highlight the power of statistics to mislead when confined to any given frame. In this instance, he chooses to bypass the most singular thing of all about our economy which is that we have the most cosseted public sector in Europe and the Western world. They enjoy, even after all the cuts thus far, better pay, conditions and pensions than their peers in the very country he sets as an example to follow, Germany, the same country that is, in the main, bailing us out now.

Raising taxes is not in itself necessarily inimical to growth and prosperity. It is how the taxes are spent that is the hub point. Does he expect the struggling private sector to bear more taxes to maintain the most indulged public service in the EU? And let us be clear, that is where the tax hikes are going — 80% of the health and education budget in this country is spent on pay. Take that statistic to Germany, Mr Finlay, and see how it compares.

Margaret Hickey

Castleowen

Blarney

Co Cork