Ireland lacks fiscal capacity to respond to society’s changes

Ireland lacks fiscal capacity to respond to society’s changes

We need to come up with better ways to generate revenue and this means bold new thinking by politicians

Compared to the fiscal policy regimes across western Europe, Ireland is unusual for three reasons: it has a very low tax to national income ratio; it is highly centralised; and it dedicates very little to social investment. Each of these contributes to Ireland’s weak ability to respond to new electoral demands, or to new societal challenges.

What states can do is shaped by the revenue they can generate. In political economy research, we call...

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