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No point in raising corporate tax

Tarun Kapoor from the Business School at the University of Cambridge advocates “a 28% increase in the [corporation] tax rate”.

This, he says, can “stimulate the economy” (May 11).

While advocating such a course of action, one of the reasons he gives for the Irish economy’s current predicament is “access to cheap money”.

It was not the access to the money that caused our problems, it was the decision to recklessly borrow too much of it.

Those decisions were taken by our own most powerful citizens in government, financial institutions, etc, during the Celtic Tiger period.

As a result we all ended up with national bankruptcy on our hands.

One of the very few bright spots in our economic horizon is the performance of our exports. Perhaps I am missing something, but why would we want to damage that by outdoing the recklessness of the Celtic Tiger period through increasing our corporation tax rate?

A Leavy


Dublin 13


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