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Shortly after the turn of the century, though, the housing boom began to spin out of control. As incomes and employment in Ireland rose, cheap credit and tax incentives fueled a buying frenzy that pushed up both prices and housing stock: the cost of an average house rose almost three-fold in the decade through 2006, while some 40% of the country's housing was built in the last decade, according to Brian Devine, an economist at Dublin-based stockbrokers NCB. At the Grange, a swish 11-acre (4.5 ha) development in Dublin, realtors sold 15 luxury apartments a week...

Author: /time Magazine | Title: Ireland's Economy: Celtic Crunch Time | 11/12/2008 | See Source »

Still, Ireland remains an attractive place to do business. It's blessed with a growing labor force of young workers, and it measures up well, too, in terms of taxes: its corporate tax rate of 12.5% is one of the E.U.'s lowest, while levies on labor and capital stack up well against rivals. That's one reason the world's second biggest advertising firm, WPP, announced in September that it plans to shift its headquarters from the U.K. to Ireland; and why pharmaceutical company Shire and publishers United Business Media both announced similar plans earlier this year. The arrival...

Author: /time Magazine | Title: Ireland's Economy: Celtic Crunch Time | 11/12/2008 | See Source »

Such a rebound will be welcomed by the Irish government. Thanks to the fall in tax receipts caused by the housing-market collapse, Ireland's budget deficit is forecast to hit 5.5% of GDP this year - well beyond the 3% limit imposed by Brussels. That has left Dublin little room to spend its way out of trouble, a fact made clear when Finance Minister Lenihan announced a slew of tax hikes and spending cuts...

Author: /time Magazine | Title: Ireland's Economy: Celtic Crunch Time | 11/12/2008 | See Source »

...right. In 2005, Crist, then Florida's attorney general, declined to help Governor Jeb Bush and religious conservatives in their crusade to keep Terri Schiavo on life support. The following year, on a platform that ignored the culture wars and focused on bipartisan fixes to Florida's nagging property tax and insurance crises, Crist was elected governor in a landslide. His approval ratings since then - despite his difficulties fixing those problems -have been the highest in the state's history. Crist won more kudos last month when, seeing the unexpectedly epic lines at Florida polling sites, he extended early-voting...

Author: /time Magazine | Title: Can Republican Governors Rebuild Their Party? | 11/12/2008 | See Source »

...they even have a spouse or partner who lost their job somewhere else,” Semonoff said. DHS agency directors expressed relief that Question One—the ballot measure that would have eliminated the current 5.3 percent income tax—failed to pass last Tuesday. Income tax accounts for nearly $12 billion in state revenue. According to Reddy, the effect of the repeal if passed, would have been “absolutely devastating.” Many centers suffering losses are turning to private grants, though the amount lost in state funding is ultimately irreplaceable, Reddy said...

Author: By Shan Wang, CRIMSON STAFF WRITER | Title: Human Services Face Budget Cuts | 11/11/2008 | See Source »

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