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Crazy idea maybe, just throwing it out there: No Corporation Tax


vanla sighs

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Joined
Sep 1, 2009
Messages
5,102
What would happen? The coffers would empty even quicker or there would be a massive influx of FDI into Ireland? I'm not saying I agree with it or not, I'm just throwing the suggestion out there to get opinions. I know Brussels would go ballistic of course but taxation is after all a national issue. Thanks.
 

galleyslave

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Joined
Sep 24, 2010
Messages
590
no, not necessary. 12.5% is low enough. If you want to encourage further investment, the cost of doing business including energy, wages and provision of good reasonably priced telecoms and web access and infrastructure all need to be looked at.
 

LeDroit

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Joined
Mar 11, 2010
Messages
1,771
Much as I despise taxation in general there is probably an argument to suggest that a 'low tax' policy would be just as effective as a 'no tax' policy in attracting FDI. I think there is ample room to reduce the rate however, down to probably 5%.

When sitting at a board meeting there will be few directors who weren't impressed with 5% who would be with 0%. If someone won't come in at 5%, there are obviously other factors stopping them. An example could be geographical logistics.

If we were to go to 0% I think it should be dependent on creating a set number of jobs. You could do it cleverly in allowing payroll to be 100% written off against their tax bill. This would encourage employment as any worker is better than paying the tax and not employing someone. They should implement it now for all existing companies, that'd bring unemployment numbers down.
 

CookieMonster

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Joined
Feb 19, 2005
Messages
34,801
no, not necessary. 12.5% is low enough. If you want to encourage further investment, the cost of doing business including energy, wages and provision of good reasonably priced telecoms and web access and infrastructure all need to be looked at.
What he said. Keep it as it is for now but focus on reducing the cost of doing business. Over the last number of years we have made some improvements in infrastructural links and there is no shortage of premises, no shortage of people willing to work but energy costs are too high, telecoms infrastructure is poor, wage costs are too high also. Work on these first and then revisit the 12.5% level... it may need to go lower. We have to focus on bringing investment back into the country and getting people back to work and we must be willing to do everything in order to achieve that.
 

Dian Cécht

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Jun 20, 2010
Messages
7
There is a EU limit on how low it can go.......think its around 10% if anyone can confirm with a linky
There is.... I’m not sure what it is though. Think it is actually 12.5%

A corporation tax of about 7% is probably optimal but of course our masters in Brussels won’t allow it. That’s what you get for handing your independence to a bunch of foreign creeps.
 

disgruntledcitizen

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Joined
Jul 19, 2009
Messages
405
There is.... I’m not sure what it is though. Think it is actually 12.5%

A corporation tax of about 7% is probably optimal but of course our masters in Brussels won’t allow it. That’s what you get for handing your independence to a bunch of foreign creeps.
its those same said foreign creeps whom will be paying for just about everything in this country next year when we have to go looking for funding
 

baalthor

Active member
Joined
Mar 12, 2010
Messages
101
Remember, you would have to reduce it to zero for all the existing companies, both foreign and domestic. So that's a huge chunk of tax revenue gone.
 

LeDroit

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Mar 11, 2010
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1,771

Dian Cécht

Member
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Jun 20, 2010
Messages
7
its those same said foreign creeps whom will be paying for just about everything in this country next year when we have to go looking for funding
They’re also the same foreign creeps who flooded Ireland with cheap money (low ECB interest rates when we needed to cool the market) that fuelled the boom and eventually.....the bust.
 

LeDroit

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They’re also the same foreign creeps who flooded Ireland with cheap money (low ECB interest rates when we needed to cool the market) that fuelled the boom and eventually.....the bust.
If you feel sick after eating too much ice cream it's not Ben n Jerry's fault.
 

zeleneye

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Joined
Nov 13, 2008
Messages
531
There is a EU limit on how low it can go.......think its around 10% if anyone can confirm with a linky
I am pretty sure there is not (unlike for VAT). However, no member state has a rate lower than 10%.

Other than that, this thread is bonkers. We have a crisis in public finances and you are proposing cutting off a major source of revenue?

We have failed to attract any new businesses to Ireland because all other aspects of the economy are uncompetitive. We should focus on fixing the things that are truly broken.

I think we should consider raising the corporate tax rate a few points. If you look at the other rates across Europe - Tax rates of Europe - Wikipedia, the free encyclopedia - the next highest rates above ours are 15 and 16%. Why not raise to 14.5%? We would still be lower than the next highest rates - so no risk of re-repatriation of profits - but take in some much needed extra revenue.
 

Clanrickard

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Apr 25, 2008
Messages
33,035
I am pretty sure there is not (unlike for VAT). However, no member state has a rate lower than 10%.

Other than that, this thread is bonkers. We have a crisis in public finances and you are proposing cutting off a major source of revenue?

We have failed to attract any new businesses to Ireland because all other aspects of the economy are uncompetitive. We should focus on fixing the things that are truly broken.

I think we should consider raising the corporate tax rate a few points. If you look at the other rates across Europe - Tax rates of Europe - Wikipedia, the free encyclopedia - the next highest rates above ours are 15 and 16%. Why not raise to 14.5%? We would still be lower than the next highest rates - so no risk of re-repatriation of profits - but take in some much needed extra revenue.
Does Estonia not have 0% corpo tax?
 

dapman

Active member
Joined
May 7, 2008
Messages
133
10% would be worth a go. I think it would mop up those multinationals that are considering a new European location. Might at well go for broke...no pun intended.
 

zeleneye

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Joined
Nov 13, 2008
Messages
531
Does Estonia not have 0% corpo tax?
There are a few with rates of 10%...but if the tax tourists that register their returns in Ireland don't avail of that rate now, there must be other reasons. Which is why I think we could get away with raising the rate a couple of points (to be still below the next lowest).

At the very least, it should be discussed by those involved in deciding on our public finances. End the taboo.
 

CookieMonster

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Feb 19, 2005
Messages
34,801
If you feel sick after eating too much ice cream it's not Ben n Jerry's fault.
If you feel sick after too much Ben and Jerry's is rammed down your throat it's not your fault.
 

junius

Well-known member
Joined
Jul 31, 2010
Messages
3,700
Much as I despise taxation in general there is probably an argument to suggest that a 'low tax' policy would be just as effective as a 'no tax' policy in attracting FDI. I think there is ample room to reduce the rate however, down to probably 5%.

When sitting at a board meeting there will be few directors who weren't impressed with 5% who would be with 0%. If someone won't come in at 5%, there are obviously other factors stopping them. An example could be geographical logistics.

If we were to go to 0% I think it should be dependent on creating a set number of jobs. You could do it cleverly in allowing payroll to be 100% written off against their tax bill. This would encourage employment as any worker is better than paying the tax and not employing someone. They should implement it now for all existing companies, that'd bring unemployment numbers down.
The way your mind works LeDroit is always of amazement to me. It is quite incredible how people like you know nothing and think of nothing but how the financial figures add up or don't. Do you ever get outside? Have you ever stopped to listen to nature? Have you ever heard the skylarks singing high in the sky above your head in a clear sky? Have you ever been mesmerised by pods of dolphins playing in a calm bay? Have you ever watched a stripey spider watch its potential prey hoping it will become entangled in its web? Have you ever let your bare feet sink in quicksand up to your ankles, surfed a 2 metre high wave, let the wind ruffle your hair, let sand release through your fingers back onto the sand you scooped it up from, have you ever sat in a bog covered landscape miles from the nearest road and heard the sound of silence? Have you ever looked at the edges of a quarry and wondered at the forces which contributed to nature's patterns thereon? Have you ever felt any emotion that didn't involve your calculating how much it would cost the economy or your personal purse strings? Have you ever let your imagination take you places in your dreams. Are you capable of becoming a part of nature that undoubtedly you came from unless you have been artificially manufactured or arrived by immaculate conception? Did you watch Stephen Hawking's Universe last night? I wonder are you capable of thought at all? Or does all of life come down to cost comparisons, corporate profits, FDI, board meetings, dictatorships, tax bills......................... well, may God help you! Somebody needs to.
Even politics needs reality to progress - without reality and without the knowledge of what is around you and what has gone before you, you really don't have much to offer anybody. I think you need some days off to do a bit of thinking. Think about environmental degradation, ecological destruction, species extinction and then think about yourself and what you want to leave this world like for your descendants!! :oops:
 
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