Wednesday, April 13, 2011

Financial Crisis & Irish Taxpayers / Comment / Opinion - Ireland’s taxpayers must share the pain

The logic of this article is akin to assigning all the blame for the local impact of an international pandemic (say, Bird Flu) on the ministry of health. Yes, they have some responsibility (to limit its impact), but cannot be blamed for it all. in most democracies the taxpayer has limited control on the real overseers (cronyism, favouritism) and absolutely no control over international financial markets, etc.

Interestingly, the Irish tax payer is not rejecting this portion of the liability. What they they are outraged at, is that those directly responsible (developers, financiers, and government) are not held liabie.

Only the taxpayer (whose control was, at best, indirect) is being forced to pay. THe courts and 'current thinking' is protecting bond holders, and other stakeholders who were also taking risks in order to make money.

IWe now have a situation where the risk taker, who is free to exercise a choice, risks only profits, whereas the taxpayer, who has limited choice or influence, risks the whole loss against a very paltry share in the profits.

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