Ireland, in other words, is upping its bet on the corporate tax boom continuing. The budget documents estimated a surplus of €10.2 billion this year and forecast an €8.1 billion surplus next year. But the figures are, as we know, supported by so-called windfall tax revenues. Spending the corporate windfall on investment is arguably less risky than using it to prop up day-to-day spending – because cuts here can be economically damaging. The golden decade for the Irish public finances driven by corporate tax receipts may slowly be drawing to a close, leaving tougher trade-offs ahead.
