Many times I wonder whenever there is finance issues the first option governments find is to increase taxes whether on people or on corporates. Cant they take other measures like reducing money spend on elections, government trips, pay cuts and so on.
Brain drain is a very common and natural phenomenon happens in almost all the field, especially in technological side. The rate of brain drain is much higher in technological field, especially in IT sector, when compare with the other fields. This may be because of better packages, work culture or for career growth. The recent decision taken by Ireland government fasten this phenomenon, either by forcing the companies to move away or the employees to move away as a part of tax savings. In both case it’s not good for the nation’s economic side and industrial growth sector.
Sp, Taxation - direct or indirect is a major revenue venture for any goverment. Election on the hand is not a yearly occurrence, trips I'm sure is a necessity. I believe the government would have assessed and evaluated other sources of income.”
It will be penny wise, pound foolish for the Irish government to try to play with current incentives that made it the Celtic Tiger at a time when England is proposing its own silicon vallley. It will make it definitely easy for investors to just travel down to London along with the skilled labor. A delicate balance at this time with IMF conditions which may be the cup of poison that will kill the Irish economy.
This is a crisis that is bound to have ramifications across national borders and will impact big banking institutions in Gemrany, UK and France which have a good amount of exposure in Ireland. The core of the problem is in the financial sector, with circumstances akin to those that existed during th sub-prime in US. This reminds of what happened earlier in Greece and it seems Ireland will have to follow the austerity advice of Big Brothers in the Euro zone!
Backorder, I guess the Eurozone and Britain also understood your concern on the longterm ramification of the Irish crisis, hence the late Sunday unanimous passing of the "Euro bail out" for the Irish Tiger.
Sad but true. Unfortunately, I think many more nations will face the same fate before things get better. I hope these cases will be a testament to proper foresight and the downside of pure speculation (in all industries).
If Ireland does not find a way maintain its tax base, they can potentially start loosing US employers who have invested Billions. If that happens, that will hurt the country even further. When the new government is in place, they will need to find a way to cut their cost while keeping the taxes relatively competitive. I agree that raising taxes is not the only answer, yet it is the first one that governments flock to when faced with a fiscal crisis.
The world in general is faced with a financial crisis and the countries that offered incentives for foreign corporations and manufacturers are not able to sustain them. This may translate into manufactureres having to absorb increased cost across the board. Maybe this is an opportunity - albeit a small one - for the US to bring back some jobs that we have lost.
There is no doubt about it that if corporate taxes are increased further, American companies would consider pull out. After all its business and in business the first policy is to make money. The reason why they go out of US is less cost and less taxes and more profit. Unless the market is really huge that even after the high taxes they make money which definitely doesnt seem to be the case.
I wonde why Ireland government is trying to impose taxes on the Technlogy firms if they know for sure that it would impact the jobs. When even the UK prime minister is willing to invest and welcome the hi tech firms to set up the next silicon valley in london why would Ireland want to loose something that it already have.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.