Ireland to Deliver Non Austerity Budget

Ireland’s finance minister is due to deliver the country’s first non-austerity budget in seven years.

Tax rises and spending cuts of about 30bn euros (£23.7bn) been have imposed since 2007 in response to the country’s financial crisis.

However, a strong economic performance over the last year means no further austerity measures will be introduced.

It is widely expected that the top rate of income tax – 41% on earnings over 32,800 euros (£25,958) – will be cut.

The Irish government is also expected to announce it will phase out the controversial “Double Irish” tax loophole.

It has allowed large multinationals like Facebook to legally shift huge profits from Ireland to countries that are considered tax havens.

It works by allowing one Irish registered subsidiary to make payments, for using intellectual property, to another subsidiary which is tax resident in a country like Bermuda or the Cayman Islands.

Ireland has used its tax advantages as a major selling point for multinationals, so it is expected that measures to compensate for the closure of this loophole will be introduced.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza