Wednesday, January 23, 2008
IRELAND'S HIGH PERSONAL TAX RATES
Despite an attractive corporate tax scheme, Ireland suffers from punitive taxation of personal income. Indeed, throughout the years of pro-growth reforms that turned a lagging economy into a high-growing Celtic tiger, Irish policymakers reduced top personal income tax from 65 percent to 42 percent. Despite a significant reduction in top personal income tax rates, Ireland's personal tax regime remains quite unfavorable. Sunday Business Post recently reported how low-tax jurisdictions such as Portugal where no capital gains tax is charged, Bermuda, Monaco, Switzerland, Liechtenstein, Cayman Islands and British Virgin Islands attract successful individuals, tax exiles and lure direct investment.