Sir, – In his insightful piece “Sinn Féin isn’t in government, but it is setting the economic agenda” (Opinion & Analysis, August 12th), Cliff Taylor refers to a “desire to cut income taxes with the upward trend in State spending. These two courses cannot be pursued indefinitely.”
How right he is. We can hope that our corporate tax receipts continue to flow as abundantly as they have done in recent years, but it would be prudent and wise to plan for the scenario where there is a fall-off in corporate tax receipts, be that from a recession or slowdown, a change in global corporate tax rules, or otherwise.
Obviously, the homelessness and cost of living crises must be tackled as priorities, but managing the national finances imprudently would risk exacerbating both in the longer term.
Let’s not forget what happened when public spending spiralled upwards on the back of what proved to be temporary surging property tax receipts prior to the crash.
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Have we learned nothing from the crash and all that it entailed, not least for “ordinary working people”?
Cutting taxes while increasing spending may seem irresistible to politicians, especially when the national finances are in such rude health, and it may be politically sustainable in the short term, but it is not economically sustainable in the longer term, and should come with a grim health warning, based on harsh experience. – Yours, etc,
ROB SADLIER,
Dublin 16.