Newton Emerson says we really should not be frightened by scare stories about Sinn Féin's proposed taxes or its unorthodox revenue-raising pabilities
Ireland's leading economist has rubbished claims that the rise of Sinn Féin could bankrupt the country. Last week Minister of State Mr Willie O'Dea revealed that American investors had approached him to express concern over the recent election results. "They told me that even the slightest risk of a communist government in Ireland would force them to move to China," he said.
This week fiscal analysts at independent think-tank Anal-Fisc costed Sinn Féin's manifesto pledges at an extra €5 billion a year. "If these policies were ever enacted even Ray Burke would end up paying taxes," warned a spokesman yesterday.
However, this has not impressed Seán Maynooth Keenan, Professor of Applied Economic History at UCD and world-renowned author of The Wealth of Nationalists.
"Sinn Féin's revenue-raising capabilities may be unorthodox but they are undeniably the most successful the State has ever seen," said Prof Keenan. "Let us not forget that this is a party whose very first act was to raid a post office. There is also little evidence to suggest that senior republicans support the concept of increased personal taxation. Indeed, most of them are even less fond of paying taxes than Ray Burke."
According to Prof Keenan leading figures in Sinn Féin have also regularly opposed the concept of tobacco duty, alcohol duty, fuel duty, stamp duty and import duty. "Many in the movement see this as their duty," he added.
However, party finance spokesman Caoimhghín Ó Caoláin claims Sinn Féin will not shy away from tax increases where it considers them necessary. "Better State services will mean higher rates of taxation," he told the Irish Examiner this Monday, "unless you're talking about the bin tax, in which case everyone should just go and lie down in the road."
Sinn Féin hopes to soften its proposed tax blow by focusing on the issue of wealth redistribution.
"Our economic policy is based on compulsory equality for all," explained party president-for-life Gerry Adams yesterday. "The reality is that due to the Thatcherite policies of the Progressive Democrats, the rich now have more money than the poor. Others, including the media, have a responsibility to move this process backwards."
Prof Keenan agrees that wealth inequality is a problem in Ireland. "Twenty years ago the poorest 0.9999997 per cent of the population owned absolutely nothing while 100 per cent of the country belonged to Charlie Haughey," he explained. "Today the situation really isn't much different except that now it's being justified by free market theory instead of gombeen nationalistic tripe. However, as a UCD professor, that's still quite enough to make me very angry indeed."
To achieve compulsory equality, Sinn Féin's 2003 "Budget for an Ireland of Equals" proposed a new 50 per cent tax band for the 28,000 Irish households earning more than €100,000 a year. This would generate €370 million in additional revenue, leaving a shortfall of just €4,630 million. "There are any number of ways a Sinn Féin finance minister could plug that little gap," explained Prof Keenan. "These include stopping the ground rent on Dublin Castle, melting statues of Queen Victoria for scrap, setting up a National Raffle and cloning Christy Moore."
Concerns remain that the proposed 50 per cent "super tax" might discourage Irish entrepreneurs, but Sinn Féin tax enforcement specialist Martin McGuinness dismisses this suggestion. "The Dunne family weren't put off by a kidnapping, so I don't think people will close up shop just because we've upped our insurance charge," he told last weekend's Sunday Anti-Business Post. "The expression 'upping our insurance charge' means 'raising corporation tax' as Tuisceart Gaeilige," added a nearby press officer almost immediately.
North Kerry TD Martin Ferris also played down fears that Sinn Féin policy might force American companies to relocate. "There is no other group of people in Ireland who have done more than us to attract inward American investment," he said. "We've been bringing it in by the boatload."
However, it is the impact of Sinn Féin policy on house prices that will be of most interest to many potential voters. On this point in particular, Prof Keenan sees little reason for alarm.
"The housing market is dividing Ireland into a poor urban underclass, increasingly disenfranchised and disaffected, and a bourgeois elite flaunting its wealth on tasteless second homes and cynical buy-to-let speculation," he explained. "Clearly the Sinn Féin leadership has no incentive - either political or personal - to change that situation one iota."
Newton Emerson is editor of the satirical website portadownnews.com