Much like the Central Bank, set up an independent tax commission to set tax policy in Ireland – fiscal policy is more important now than ever before because of ECB controlling monetary policy.

Advantages:
– tax policy set by full-time professionals, even perhaps a couple of economists.
– a balanced tax framework – not one dependent on property and capital gains taxes like the present govt put in place and to a large extent is what is crucifying the govt finances at present.
– now that the ECB controls monetary policy, fiscal policy is all that the country has left to manage the economy and therefore is extremely important.
– tax breaks, in theory, would not out live their usefulness.
– tax breaks could be targeted at sectors the govt wants to grow i.e. green sector.
– commission would put a tax system in place that manages the needs of the economy simply and easily and adjust when necessary.

Disadvantages:
– the govt is unlikely to give this policy setting tool up – although the same was said about monetary policy.
– I\’m sure there are others but being in favour of it makes it more difficult to spot…

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