The Celtic Miracle

Chris Edwards at NRO.

A great overview of the rapid development of Ireland over the last 30 years and the reasons why; the advantages that low tax rates can give to both developing and developed nations. Ireland 30 years ago was mired with low growth, high tax rates and almost no foreign investment.

"Ireland has boomed in recent years, and it now boasts the fourth-highest gross domestic product per capita in the world. In the mid-1980s, Ireland was a backwater with an average income level 30 percent below that of the European Union. Today, Irish incomes are 40 percent above the EU average. "

Irish government spending is down dramatically, from over 50% of GDP to a current rate of 34%, while it slashed corporate, capital gains and personal tax rates. Manufacturing, finance, and the high tech sectors corporate rates are now among the lowest in the world, just 12.5%, one third that of the US, and investments by US based tech corporations are helping Ireland to become one of the leading high tech exporters in the world. The Irish example has led to many Eastern European nations to also adopt low tax rates, many of them flat tax regimes.