November 13, 2010); Ireland is facing severe headwinds for future growth. The depression of the real estate market and the decline in the availability of capital stock for investment through the banking system is of primary concern to policy makers. With the acceptance of the European Union bailout the demand for Ireland to incorporate austerity measures and increases in tax rates pose obturations for growth. An increase in the corporate tax rate from its level of 12.5% would seriously damage any hope of a sustainable economic recovery. According to Minister of Agriculture Simon Coveney

We are not going to commit economic suicide by raising a corporate tax rate that has served Ireland well and that will be of significant assistance to us in rebuilding our economy, which will be export-led and which will be reliant on future foreign direct investment in Ireland. (Beesley, a. March 18, 2011)

Beyond tax policy...
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