16/08/2005 1:11:01 pm
Lower Tax - More revenue. In Ireland, the corporate tax rate was 50 % in 1975. Today, it is only just above 20 %. What happened to the revenue during this time? It increased! In 1975, coporate tax revenue was 1,5 % of GDP, today, it is almost 4 % of GDP. And since GDP has grown dramatically, it is 4 % of a vastly larger cake than in 1975.

Decreasing taxes often increase revenue, there are many such examples. But the best thing is that the wealth which is not taxed increases even more. 50 % of 100 euro is 50 euro. And 10 % of 1000 euro is 100 euro, an increase no doubt. But consider what is left in society: 900 euro instead of 50. This is the real gain by decreasing taxes, which increases growth.