IT WAS like preaching to the converted for Friends First economist Jim Power at a recent lunch briefing hosted by financial broker Orca at the Il Segreto restaurant on Dublin’s Merrion Row.
Power told about 40 high net worth individuals that political parties proposing to tax our way out of recession would only drive Ireland deeper into an economic hole. “Even if you were to introduce a 65 per cent tax rate for everyone over €100,000, you would still only raise €200 million in revenue,” he said.
That was one in the direction of the Labour Party and Sinn Féin, from the Waterford economist who has Fine Gael leanings.
Power said entrepreneurs were at risk of being “demonised” and “taxed off the face of the earth”.
“Instead of trying to tax our way out of this mess, we need to make significant cuts on the expenditure side.”
Power also suggested the need for major reforms in local government and suggested the establishment of a ministry with responsibility for competitiveness and public-sector reform.
Most of the above can be found in the Fine Gael manifesto. Enda Kenny will be pleased.
