Tax Breaks for Developers: Great for Building Houses, Terrible for Building Political Careers

(Especially in Ireland)

Let’s face it: tax breaks for property developers sound like a fantastic idea—if you’re an economist, a property developer, or someone who might enjoy watching Irish politicians get beaten to death in the same manner they like to club baby seals to death in Canada. Tax breaks for property developers have long been a contentious historical issue in Ireland, sparking debates that straddle the lines between economic pragmatism, political sensitivity and Celtic Tiger PTSD.

Micheál Martin floated the idea of tax breaks for property developers last week, but Finance Minister Prudent Paschal Donohoe has ruled them out. While Micheál Martin might be claiming to think radically, Paschal Donohoe’s political instincts are correct here. We’re a nation traumatised by the 2008 crash, and already, the opposition is saying it’s Fianna Fáil up to their old tricks again. Opposition parties and advocacy groups are quick to frame tax breaks as evidence of government cronyism or a failure to prioritise th…