Irish voters recently dealt a stunning blow to the Eurocrats in Brussels,
voting to reject a plan to expand the European Union (EU). This is
sweet revenge. A few months ago, the pro-tax European Union voted
to condemn Ireland's supply-side tax policy for causing "too much"
growth. 

By voting no, Irish voters showed that they want to protect and
maintain the "Celtic Miracle" the economic gains caused by sweeping
tax-rate reductions. It was only 15 years ago, after all, that Ireland
was the "sick man of Europe." Unemployment topped 15 percent.
Government spending consumed more than one-half of economic
output, confiscatory tax rates stifled growth, and budget deficits
skyrocketed to 15 percent of GDP. 

Unlike some other nations in Europe, Irish lawmakers courageously
decided that radical surgery was needed, and tax rates were slashed.
Corporate tax rates have fallen from 50 percent to 20 percent and will
drop to 12.5 percent in 2003. Personal tax rates have been reduced
from 65 percent to 42 percent, and capital gains tax has fallen from
60 percent to 20 percent. 

What is the result of this experiment in Reaganomics? Today, Ireland
enjoys unprecedented prosperity. The country's economy is booming,
expanding at about 9 percent annually. Unemployment has dropped
by nearly 10 percentage points. Growth has been so robust that
Ireland now has to import workers, an amazing development for a
nation that traditionally has seen many of its people emigrate in search
of jobs. 

As one might expect, this astounding performance has attracted
attention from Ireland's European neighbors. Surprisingly, though, this
attention has been hostile. High-tax nations such as France are upset
that Ireland has lowered tax rates. They argue that low tax rates are a
form of "unfair" competition. In a truly Orwellian twist, European
bureaucrats even assert that Ireland's low tax rates are a form
of "state aid." 

OMED: the above text is excerpted from a story by Daniel J. Mitchell in the Washington Times, June 26, 2001.   Praise be to my Oirish brethren!  They have discovered that the wagon runs faster going downhill with the wind at its back.  If I were a younger man, I would move there. The trout fishing isn't bad, John Wayne, Victor McGlauglin, Barry Fitzgerald and Ward Bond live at Inisfree and they don't have any income taxes at all for writers.

What a grand time I would have. Imagine TV news programs that never have guest appearances by Tom Daschle whining about how tax cuts will destroy America! 

Ireland, I tell you, is heaven, these days. (LL)