Madam, – I try to follow events in Ireland from the Netherlands, my half-Dutch, half-Irish children cheered Ireland on to victory against Wales a few weeks ago.
As in every other country, Ireland is under great financial stress at present, but it is difficult to understand all the street protests about increased taxes. In the Netherlands, middle income earners (up to €55,000 a year) pay a 42 per cent rate of income tax while high earners pay 52 per cent.
Besides that we pay premiums for social insurances. Why have your income tax rates remained so low and why were they not increased during the boom years? Equally, it is difficult to understand why your top public sector workers and public representatives are paid so much – in the Netherlands, a country of 16.5 million population, there are moves afoot to ensure that nobody in the public sector can earn more than the prime minister (which is approximately €170,000 a year).
This will apply to all employees and chief executives of state or semi- state companies, universities or government departments etc.
In other words, it is vital to lead by example. Incidentally, we have only 150 MPs in our country.
Your country cannot expect an adequate housing, health and education sector without its citizens being willing to pay for it through increased taxation.
Fortunately we did not suffer from the housing “bubble” you experience in Ireland. During visits to Ireland over the past years, I was always shocked by the unreal level of house prices.
Half our schools are free but in denominational schools, parents are asked to make a contribution based on their income. But this is “capped” and on average costs not more than several hundred euros per child. This helps to pay for a remedial teacher etc. Interest-free loans are given to third level students – the lower the parents’ income, the higher the loan. This is paid back when the student takes up a career later on, but university education is not free.
We have an excellent health service, but, again, we pay for it through taxation. We do not have generous inheritance tax thresholds as in your country – here if a child inherits €100,000 from a parent, inheritance tax will be payable on this.
In conclusion, Ireland has plenty of room to manoeuvre upwards in taxation. It remains a prime software and pharmaceutical exporter and has almost unlimited potential in tourism, agriculture, marine culture and very importantly, wind and wave energy – we envy you your space. So cheer up and get on with it. – Yours, etc,