Posted by jj on July 06, 2011 at 08:15:57:
In Reply to: re: The Answer to the Economic Crisis posted by HURTING on July 05, 2011 at 15:26:25:
OK, if it is worth €200bn at least (and I've no idea where you are getting that number), with a 25% tax rate (as is the minimum) that is worth €50bn to the Irish state, (and if a profitable field, depending on ratio of costs to revenue, can be increased to 40%. Now if your numbers are correct, they will be extremely profitable and then we are in no trouble at all - we will get €80bn.
However, I think the number is incorrect. I think you are referring to an inflated value of the gas in total of the cost of Ireland not just Corrib field. Secondly, it doesn't just "pop up" to the surface, with Shell likely to spend nearly €2bn on production/extraction facilities (and I don't know how much of your €200bn refers to Corrib field, but pro-rata the cost).
I have argued for increasing the tax rate, as was down by the previous government but not sufficiently in my opinion, but talk of annulling property rights (which is enshrined in the Constitution is fanciful).
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