I lot of the argument I hear about corporation tax is that if we raise it then multinationals will start to leave, the overall corporation tax take will go down, loss of jobs etc with the companies leaving. etc.
This begs the question, if corporation tax was reduced would it attract even more multinationals to locate here, possibly increasing the overall tax take, more jobs etc.
I realise that this is probably politically impossible both with Europe and internally but could it be the case that reducing corporation tax could have positive effects for the Irish economy?
Malta has a 5% effective tax on all dividends too - it’s easy to route earnings through it and they have a double-taxation agreement with Ireland; we’re not the only ones with competitive tax rate targets.
If we somehow get through this mess (which is doubtful), then yes reduce CT. What do people want in this fucking country; do they want jobs or not? Morons drolling on about tax harmonisation - see how that will leave a peripheral small economy like ours. Lefties need to be told to shut the fuck up on this one.
Although politically in the EU (even post bailout, whenever that might be) it would be difficult.
What about a tax credit for each employee in Ireland? Say a credit of 10,000 Euros per employee employed in Ireland for a year. Credit only allowable against profits in that year. Employ 100 people for a year and thats a million off your tax bill for that year.
Another thing would be a cap on the total amount of income tax paid by a person. Make the country attractice for high earning individuals. If you persuade a high earner to live here because his tax is capped he/she will not only pay some income tax here that would have gone elsewhere otherwise but he/she will probably do a fair bit of personal spending here.
This pearl sounds like someone who worked on the Lisbon referenda - lisbon for jobs, good joke, hey?
now it’s “lower taxes for jobs” to bring in the multinationals
This at a time when it’s more likely that multinationals will be retrenching/downsizing whatever the buzz word is today
As for telling “lefties to shut the fuck up” why is it that it reminds me of a particular prick who suggested that people should commit suicide?
A related question:
If either Ireland or the Netherlands changed for whatever reason their Double Sandwiches, etc., so that all companies here did pay at least 12.5% (and a CPA study showed their average to be 15% anyway but I digress), what proportion of the jobs here would be under threat? My guess is not a lot, but I have nothing to back that up.
The political point being: with the Double Irish system closed, the last vague suspicion of Ireland being a tax haven, as per OECD criteria, would be gone.
I don’t know, I have to say. Ireland already does incredibly well out of global FDI flows, punching far far above our weight even in 2008, 2009 and it seems 2010. So it’s hard to see how we could do much better if we had lower rates, particularly if the most tax-sensitive of our guests are already doing their homework and paying only 2-5% in corporate tax.
Does that mean we can push up the rate? There are no studies that I know of that look specifically at the Irish rate, but there are papers out there that look at corporate tax and from memory the evidence is that lowering the rate does boost FDI (and thus create jobs) but then most countries are at a higher rate when they start to lower in the first place. My gut says we could probably get away with a 15% rate but certainly anything above 20% would be a threat to at least some companies’ presence here.
FDI & corporation tax are obviously vital to our economy, but surely it’s a case of too many eggs in one basket. When are we actually going to do anything about developing and growing our domestic economy and indigenous industrial and commercial base? It is the only way to create long term wealth in this country. Or are we completely incapable of doing this?
You are of course correct. Unfortunately this is something that has been talekd about for decades. Remember the lower CT rates applies to all companies here and new start-ups pay 0% CT (within limits). So perhaps it would appear that we are incapable to a certain extent or at least lacking in ambition/confidence. For example, I have always been amazed at how much more hasn’t been made of the food export sector.