Google, Bubble Bubble TAX Toil and Trouble - Predict affect on Irish Economy


#1

Under starters orders… :ninja:

Following todays news

Anyone want to broad brush stroke out the net effect of this in the short, medium and long term for the Irish economic numbers year on year.


Will Ireland's corporation tax survive?
#2

https://www.ft.com/content/f5861bca-306d-11ea-9703-eea0cae3f0de
More from the foreign press about our CT predicament


#3

Corporation tax revenues grew 4.8 per cent year on year to €10.9bn, beating even the most optimistic government forecasts and capping a half-decade of stellar growth from just €4.6bn in 2014. The total tax haul was a record €59.3bn, almost double the €31.8bn received in 2010, the worst year of the crisis.

That’s an incredible growth rate. I’d not heard of it being spoken about before. Only 20-25% max of that growth in tax revenue is due to CT. Would be interesting to see the breakdown of that growth by tax head, and a comparison of average earnings over the same period.


#4

And yet we are barely running a budget surplus, there’s very limited Capital Expenditure programmes, and we’re still just dumping increasing money into the public services with no noticeable improvement in services in any way that’s positively impactful on the public!

What happens if / when the economy drops off by 5-10% tax take?.. we’re f#cked then.
Again!

With a savagely high 200Bn national debt as a starting point…

…can’t see the Govt then NOT coming for your savings then, “in the national interest” etc etc.


#5

All from a supposedly ‘right wing’ government of FG/FF. With various opposition parties that are even more tax and spend waiting in the wings…


#6

According to the CSO Earnings and Labour costs average weekly earnings in Q1 2010 were €683, and €772 in Q2 2019. An increase of 13% over the course of the decade.

The Labour force survey in 2019 gives the number employed as 2,300,000. The QNHS in 2010 suggests there were 1,857,000 in employment in Q1 2010. A growth rate of 24%.

Still not sure how a 13% increase in earnings and 24% increase in numbers employed gets to a doubling of Income tax take though.


#7

As well as the number of employed increasing dramatically as you’ve said: A lot of people’s income marginally increasing to bring them into the tax bracket for first time, or into the higher tax bracket? Lots of USC?

If you were just inside the tax bracket, it wouldn’t take much of a pay increase to double your tax contribution.


#8

Yeah perhaps. Highlights that we are paying so much more tax on average, after a decade of FG led government. No doubt FG will spin this as a good thing.


#9

Hmm… general experience of right wing governments in UK and US is that they still spend while cutting taxes - meaning that National Debt balloons out of control - hence our 200Bn debt and the similar situations in UK and US


#10


Out in the open now from Pascal. No more spin


#11

In 2015, multinationals moved their “HQ” from switzerland to Ireland. I forget the reason, perhaps tax rules tightened in switzerland.