Tuesday, July 20, 2010

Why the Irish construction boom didn’t dampen their property price bubble…

Economy derailed by tax-break gravy train

"WE have ghost estates, zombie hotels, unrentable retail units and office buildings as deserted as the Marie Celeste. Meanwhile, the possible cost of the Anglo bailout soars to more than €33bn and the amount of non-performing Nama loans is revealed as 75 per cent. Madly generous property tax breaks played their part in triggering the [property price bubble and ensuing] property crash and the banking collapse. A jaw-dropping amount of State-subsidised tax bonanzas were attached to everything from multi-storey carparks, hotels and housing estates -- to holiday camps, private hospitals and holiday homes... At €7bn by 2005, the cost of various tax breaks to the Exchequer was three times bigger than income tax receipts. As much as €3bn of that may have been property related..."

Posted by mark wadsworth @ 10:12 AM (1014 views)
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