March 9, 2009
A publicly acquirable “recovery bond” and “innovation bond” where the coupon is redeemable for income tax or corporation tax relief over a period of 10-15 years. Foreign tax sheltering would also be permitted. (we’re known as a tax haven anyway). Tax exiles could be repatriated through an attractive coupon rate for mixed recovery & innovation bond investment.
The recovery bond is for restructuring the bank debt and reform of public sector expenditure and organisations. The innovation bond is for generating indigenous industry by financing “knowledge economy” startups with further funding round committments from major US and EU Venture Capital funds.
The aim would be to transform the economy into a more innovative one with lower indirest and direct personal taxation. Employers’ PRSI should be phased out over a a 5 year period. Reducing the complication of the tax system and the size of the governmental depts required to implement them would be another goal. The innovation fund would have the goal of creating at least one “fortune 500″ scale Irish tech company over a 10 year period.