Congressman John Campbell's Blog - Green Eyeshade Blog

Wednesday, April 30, 2008

Posted by: John Campbell at 5:00 PM

Today, His Excellency Bertie Ahern, the Prime Minister of Ireland spoke to a joint session of Congress. Ahern will be stepping down as Irish Premier; his legacy will be synonymous with the longest economic expansion in Irish history.

Ireland’s recent economic success is thanks to a steadfast reliance on the free market. In 1987 Ireland’s per capita income averaged about 63% of the United Kingdom’s. From 1990-1995 their economy grew more than 5% per year and from 1996 to 2000 it exploded to more than 9% per year.

Prior to the Irish economic boom, Ireland had a 13 year period of stagnation. Ireland then took an aggressive course of slashing government expenditures, abolishing federal agencies, and cutting tax rates and regulations. Much to this conservative’s delight, the government made strong pledges to abstain from deficit spending or inflate the currency, and they kept those promises!

This year, the Heritage Foundation ranked Ireland as having the worlds 3^rd freest economy (click here). In case you were wondering, the United States came in at 5^th place (click here), behind Australia, Singapore, Hong Kong, and Ireland. According to the Organization for Economic Co-operation and Development (OECD), Ireland has outperformed all industrialized economies over the past decade.

In a period of economic downturn, solutions are needed. However those solutions should not be entrenched in big government ideas, but rather a return to more Laissez-Faire economic policies.

Legislative initiatives such as the Taxpayer Bill of Rights, which includes the Spending Limit Amendment to the Constitution and the Taxpayer Choice Act, are ways that will limit government involvement and encourage free enterprise.

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ScarletPimpernel writes:	Wednesday, April, 30, 2008 6:34 PM
Hey
Where are all the Usual Suspects to tell us that free markets are evil and do not work better than good ol' socialism/progressive/communism? I'll wait.
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muirgeo writes:	Wednesday, April, 30, 2008 6:52 PM
Sounds Good!
Ireland has socialized medicine. Their tax structure is very progressive with upper levels of 41% and lower levels of 20% ( effectively 10 - 15%). The Irish government runs a Welfare state system. The government provides free education at all levels for all EU citizens. People who are unemployed receive unemployment benefits and retired people are entitled to a state pension - both benefits are quite high by international comparisons. The education system is comparatively very good with standards in mathematics, science and technology being among the highest in OECD member nations. The state has a virtual monopoly in higher education — there are few private colleges and these are highly specialised. The primary and secondary school enrolment levels are over 95% and at these levels choice is wide. Third level entry is competitive; all college and university tuition fees are free and courses adjusted to the needs of the economy. Irish adult literacy is 99% — in line with other OECD countries. Irelands Gini coefficient is about 36 while ours is 47. So yeah I'm all for a Free market like Irelands. Thanks for making such an excellent point!
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 7:13 PM
the rest of the story
Everyone is entitled to health care in Ireland, and this is partly funded by your PRSI (social security) contributions. Eight Regional Health Boards administer the health service. There are two categories of entitlement to public health care: the full range of medical services at no cost, or certain services free with the remainder to be paid for. In addition, there are several schemes to help defray the cost of paying for prescribed medication. If you are entitled to free health care, you will receive a medical card. Medical cards are issued by the Health Boards and you need to satisfy a means test to qualify. If you do qualify for a medical card, you will be entitled to: • Free treatment from a general practitioner • Free prescriptions • All in-patient public hospital services in public wards, including consultant services • All out-patient public hospital services, including consultant services • Dental, ophthalmic and aural services and appliances • Maternity and infant care services.
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 7:15 PM
the rest of the story 2
If you do not qualify for a medical card, you will have to pay for visits to your GP, medicines and prescriptions. You would also have to pay for routine dental, optical or aural services. However, you may be entitled to some benefit if you fall into any of the following categories: If you are: You must have: Aged under 21 39 weeks PRSI paid since first starting work Aged 21-24 39 weeks PRSI paid since first starting work and 39 weeks PRSI paid or credited in the relevant tax year, of which a minimum of 13 weeks must be paid contributions Aged 25-65 260 weeks PRSI paid since first starting work and 39 weeks PRSI paid or credited in the relevant tax year, of which a minimum of 13 weeks must be paid contributions Aged 66 or over 260 weeks PRSI paid since first starting work and 39 weeks PRSI paid or credited in either the last 2 tax years before reaching age 66 , of which a minimum of 13 weeks must be paid contributions You will also be entitled to the following services, provided you are an EU national or ordinarily resident in Ireland: • All in-patient public hospital services in public wards, including consultant services, subject to certain charges. There is a daily charge of £26 for public hospital accommodation, up to a maximum limit of £260 in any consecutive 12 months. • All other out-patient hospital services, including consultants. • Accident and Emergency (A&E) departments. If your doctor refers you, there is no charge. Otherwise it costs £25 per visit. • Maternity and Infant care services including the services of a GP during pregnancy and for up to six weeks after the birth. sorry for the garbled structure. Here is the link: http://working.monster.ie/articles/healthcare/public/
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 7:18 PM
rest of the story 4
Drugs Refund Scheme If you spend more than £126 on prescribed drugs and medicines in a specified three-month period, you can claim a refund in excess of £90. Your pharmacist will give you the claim form; remember to keep the receipts. Drugs and Medicines for Long-term Illness If you don't have a medical card but suffer from a long-term illness, you will receive free medication. The conditions covered by this scheme are: mental handicap, phenylketonuria, cystic fibrosis, spina bifida, hydrocephalus, diabetes mellitus, diabetes insipidus, haemophilia, cerebral palsy, epilepsy, multiple sclerosis, muscular dystrophies, parkinsonism, acute leukaemia and mental illness for under-16s. Drugs Cost Subsidisation Scheme (DCSS) This scheme is to help those who do not hold a medical card or long-term illness book, but who are certified as having a long-term medical condition with an ongoing requirement for prescribed drugs and medicine costing more than £42 per month. To qualify, your doctor needs to certify that the condition is likely to last at least 12 months. Children Children are entitled free of charge to immunisation vaccines up to age 15 months and annual dental check-ups whilst at primary school.
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 7:18 PM
rest of the story 5
Income Tax levels in Ireland are amongst the lowest in the world - but still people seem to moan about it. A brief summary of taxation in Ireland is given below - Calculation of income tax due is done by applying the percentage rates shown below and hen deducting the tax credits from the tax due. One in four irish workers pay no tax because they fall outside the threshold. For example A single person employee earning 34000. Tax due = 20% which is 6800. Tax credits are 3520 - so tax due is 6800 minus 3520 - Total Due = 3280 per year. This could be further reduced bt other tax credits for refuse charges or trade union subscriptions. Personal Tax Credits 2007 Single Taxpayers Personal tax credits of €1,760 PAYE tax credit of €1760 Income Tax after subtracting deductions from total pay: 20% on the first € 34,000 41% on the balance Married Taxpayers (two incomes) Personal tax credits of €3,520 PAYE tax credit of €1760 Income Tax after subtracting deductions from total pay: 20% on the first € 68,000 41% on the balance Married Taxpayers (single income) Personal tax credits of €3,040 PAYE tax credit of €1760 Income Tax after subtracting these deductions from total pay: 20% on the first €uro 43,000 41% on the balance Further tax credits are available for Dependent relatives, Homemakers, Bin Charges, Union Subscriptions and fixed work expenses.
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 7:24 PM
tax link
http://www.finfacts.ie/fincentre/tax2002A.htm#incometax Muirgeo, a bit disingenuous aren't you? Half of what you state is so great about Ireland is stuff we already do. The point is that Ireland scaled back on it's "free stuff" dude and they still have drawbacks when it comes to "free" healthcare. It's not "free" and not "universal". Their tax rate on middle income and lower is LOWER than ours. On a couple making $70,000 U.S. - pay 39-41% income Ireland - pay 25% These are rough estimates and I'm not an accountant but it seems that Ireland has lower taxes and I'm sure their healthcare for the public is not as good as ours. And they still offer private healthcare which is better than what the average joe would get.
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muirgeo writes:	Wednesday, April, 30, 2008 9:19 PM
Poor Rebuttal.
Scarlet You did nothing to rebut my points. Ireland has a MORE socialized health care system then ours. Not less. You typed a lot but did NOT rebut this fact. You can't rebut it because it is a fact. I know you guys don't always believe in facts but that's another issue. Irelands health care system is NOT a free market health care system. No one goes bankrupt do to medical bills. Their top tax rate is HIGHER not lower then ours. They provide FREE college and most of the school system is PUBLIC. The Gini index is far more equitable. Bottom line is that if you are voting for Repblicans you are NOT voting for more free markets. You are voting for markets controlled by the wealthy elite designed to concentrate wealth amongst themselves. That's bad for hard working Americans in the middle class and it's actually bad for the economy and the country overall. The Democratic parties plans are far more aligned with what is happening in Ireland. Republicans have made a living off of making taxes seem like nothing but evil while they hypocritically make huge profits for themselves and their donor buddies spending massive amounts of government dollars. The point is we NEED government and what we need is GOOD and EFFICIENT government like in Ireland. The Republicans are a party that believes government doesn't work so WHY LET THEM BE IN CHARGE OF IT? These are the issues that need to be discussed at the national level but the Republican party knows they will get the crud beat out of them so like children they can only talk about Rev Wright and his supposed implications for Barak Obama's judgement. The last 7 years have left no doubt about the poor judgement of the Republican party. Obama and a democratically controlled congress will be a step towards the success we see in Ireland. McCain will be a one more step in the direction of an oligarchy as they have in Mexico.
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ScarletPimpernel writes:	Wednesday, April, 30, 2008 10:52 PM
muirgeo
I did refute and CORRECT your grand statements about Ireland. They don't have universal healthcare and it is not as good. The point of the blog entry is that going away from socialism towards capitalism is what cured their woes. You are exaggerating on health care and tax rates. They only get taxed 20% up to the first 35,000 for a single payer plus they get tax breaks. THEN it's 42% after that. The vast majority of Irish don't make much more than that. And guess what? Just like we learned in the 70's the Irish will figure out that lowering the tax rate will bring in more revenue. So you either made a mistake in your claims or you were deliberately misleading. Either way it is sick to want to take more money that does not belong to you.
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muirgeo writes:	Wednesday, April, 30, 2008 11:45 PM
debt to gdp
One of the big transformation for Ireland was responsible government spending as the chart below shows. http://en.wikipedia.org/wiki/Image:Irish_GDPDebt_Ratio_Char t.jpg Now here is the same data for America. The Republicans have failed miserably and that explains the current economic disaster in part along with much else wrong with their economic policies. So based on this data doesn't it makes sense for one to want a Democratic president? I think you've been fooled by repetitious exposure to Republican propaganda talking points. The Democratic party is far better at supporting free markets then the Republican party. I know that's hard for you to swallow but I'll keep feeding you more and more data and facts that you've never been exposed to. http://zfacts.com/p/318.html
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mr_sparky writes:	Thursday, May, 01, 2008 6:05 AM
hmmmm
as any economist should be saying, "there is no free lunch" some way or another it is being paid for in Ireland for all the goodies. Just like in the US, there is no free lunch and is being paid some way or another.
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ScarletPimpernel writes:	Thursday, May, 01, 2008 6:47 AM
Muirgeo
I agree with you about irresponsible spending in the U.S. That's what happens when we move left and have moderate Repubs pandering to special interest groups.
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About John Campbell

John Campbell is a member of the House Financial Services Committee, and has taken a leadership role in addressing the country's top economic issues. Campbell serves as a member of the Joint Economic Committee, and House Committee on the Budget. He has a Bachelor's Degree in Economics from UCLA and a Master's Degree in Taxation from USC.