Thomas Sowell's observations resonate with the Fiscal Advisory Council's concerns about Ireland's increasing government spending, projected to exceed €2bn. While high corporation tax revenues currently buoy the state, these funds are concentrated in a few companies, leading to warnings of future deficits. The council highlights the risk of depending on these revenues, stating that the absence of such income would reveal significant deficits amid a seemingly robust economy. They stress the importance of realistic financial forecasts, given the unpredictable nature of these tax surges.
"The Fiscal Assessment Report warns that over-reliance on golden windfalls could leave the State dangerously exposed when they come to an end, as they inevitably will."
"While phenomenal levels of excess corporation tax are keeping Ireland in surplus, without these revenues, there would be a substantial deficit, despite a strong economy."
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