The David McWilliams Podcast The Behavioural Budget: How Tax Shapes Us
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Oct 14, 2025 Explore the intriguing concept that taxation could be more about influencing behavior than merely raising revenue. Discover how Ireland might leverage its unique financial position to use taxes as tools for tackling issues like derelict properties and carbon emissions. The conversation draws on past budget crises and the lessons from them, questioning whether borrowing could be a sustainable alternative. Plus, ponder the potential for new political dynamics in the wake of economic changes. It's a thought-provoking discussion on economics and societal behavior.
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Use Tax To Shape Behaviour
- David McWilliams argues taxation should be used primarily to change behaviour rather than just raise revenue.
- He suggests governments could borrow for revenue and deploy taxes as targeted incentives and penalties.
Borrow For Revenue, Tax For Incentives
- Use bond markets to raise revenue and reserve tax policy for incentives.
- Design tax breaks and penalties to reward renovation and penalize dereliction or harmful behaviours.
Multinational Revenues Distort Budgets
- Ireland's multinational-derived revenues sit outside the domestic economic cycle and distort budget arithmetic.
- That external income allows more flexibility but creates vulnerability if it reverses.
