Ennis Economist Claims Government Corporation Tax Drop Reminiscent Of Pre-Recession Patterns

An Ennis economist claims the Government's corporation tax drop is reminiscent of patterns in the lead-up to the recession. While tax revenues in the eight months to August are up €3.3 billion to €53.1 billion, a €1 billion drop in corporation tax has been recorded by the Department of Finance which Minister Michael McGrath says exposes "underlying vulnerabilites" in public finances. It comes as the budget watchdog, Irish Fiscal Advisory Council, has warned the government to rein in its spending, with predictions that by 2026, its core spending will be €4 billion higher than previously planned. Ennis economist and Assistant Professor of Social Policy at UCD, Micheál Collins, believes the Government is beginning to think critically about the feasability of the corporation tax revenue model.