[cewIdeatovace]

First Greece, now Ireland, soon Portugal and Spain. Most of Socialist Europe will require bailing out. Then comes America's turn, California first, then New York and Illinois (all deep-blue states). Who's going to pay for all this? Taxpayers---with American taxpayers picking up the bulk of it, as per usual. Future generations will be so burdened with debt that it will be impossible for them to live the standard of living that their parents and grandparents enjoyed.

http://www.bloomberg.com/news/2010-1...-up-banks.html

Rescue of Ireland Would Dwarf Greece's Bailout on Cost of Shoring Up Banks

By Andrew Davis - Nov 22, 2010 4:11 AM MT

Ireland will seek emergency international aid totaling as much as 60 percent of the size of its economy, dwarfing the Greek bailout, to save its banks and bolster its finances.

Ireland will ask for about 95 billion euros ($130 billion) from the European Union and International Monetary Fund, Goldman Sachs Group Inc. estimates. UniCredit SA put the package at as much as 85 billion euros, while Deutsche Bank AG sees a 90 billion-euro plan. The 110 billion-euro aid for Greece in May was the equivalent of 47 percent of its gross domestic product.

The cost of bailing out Ireland will be inflated by the price of shoring up its banking system, which Goldman puts at almost a third of the total request. The bursting of the real- estate bubble in 2008 pushed its banks close to collapse and plunged the country into recession.

[loginereQQ]

The EU is suggesting that any bailout plan would need to be offset by an increase in Ireland's low corporate tax rate. The problem seems to revolve around a particular conundrum - the country plunged their corporate tax rate to attract foreign companies. And it worked. But they found themselves with a significant bump in population and needed to attach money to infrastructure to support this new workforce. Then the housing bubble hits and the banking system nearly collapses and lots of revenue streams for national operations dry up. And we find ourselves here.

Reuters: http://www.reuters.com/article/idUSTRE6AI3HN20101119

Ireland's transformation from a poor, agrarian country until the 1980s into one of the most prosperous and dynamic economies in Europe was built on two pillars -- generous European Union subsidies and low corporate tax.

But the Irish now have 128 percent of the EU average gross domestic product per capita. Only a few years after Dublin was weaned off EU cohesion and structural funds, it suddenly needs emergency aid to shore up banks ruined by a real estate bubble.

Corporation tax yielded 3.9 billion euros ($5.45 billion) in 2009 and is expected to bring in at least 3.1 billion euros this year, about 10 percent of government revenue. Each extra percentage point of corporate tax would raise roughly 300 million euros.

Under its four-year austerity program, the government needs to cut the budget deficit by at least 6 billion euros next year and achieve 15 billion euros in savings by 2014.

That may mean further cuts to public sector pay and pensions, new taxes on property and water, lower student grants and higher university fees. Yet no mainstream political party is calling for higher taxes on business.