German MEP all excited about Irish corporation tax.



spotty

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This is significant because Elmar Brok was brought over by Fine Gael during Lisbon to tell us that the Europeans had no designs on our corporation tax rate.
 

Ulster-Lad

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But any bailout of state finances or Ireland's banks leaves the country with a weak bargaining position and many EU competitors are scenting an opportunity: to force Ireland to bring its low corporate tax rates more into line with their own.

A key factor behind Ireland's economic rise was foreign investment, with firms such as Microsoft taking advantage of the tax regime to build strong operations there.

Eurozone counterparts, especially the French, have long complained that Corporation Tax rates of 12.5% have given Ireland an unfair advantage.
Ireland Faces Eurozone Reprisals For Failure - Yahoo! News UK

You may be on to something there Spotty. The sharks smell blood in the water.
 

anewbeginning

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I think we are all fooling ourselves at this stage, that we retain even an ounce of soverignty. We don't. We sacrificed all soverignty in the middle of this crisis when it was clear our banks had massive black holes all thanks to Bertie and Cowen's gambler friends in the banks as well as their developer cronies.
 

DCon

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I think we are all fooling ourselves at this stage, that we retain even an ounce of soverignty. We don't. We sacrificed all soverignty in the middle of this crisis when it was clear our banks had massive black holes all thanks to Bertie and Cowen's gambler friends in the banks as well as their developer cronies.
Not to forget the inept Regulator and the inept Office he held
 

SlickWilly

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The redneck Irish electorate were warned at Nice and Lisbon to follow their European bros and sisters in rejecting the nonsense but put faith in the Bifoon and the likes of the luvley Dickey Roache, ole,ole,ole!
 

sport02

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This goverment better not concede our low corporation tax to the europeans.
We the Irish were ensured it was safe under the Lisbon treaty.
 

Sierra

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Ireland should be threatening to bring the entire Eurozone down the swanny should Eurocrats attempt force high corporation taxes upon us.
 

Panopticon

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If they try, they will certainly get an answer very quickly.

Imagine if Cowen/Kenny fall in line and that horrid, populist man Gilmore becomes the defender of our corporate tax regime against Germany? Oh my.
 
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Vote Yes for economic recovery.

I didnt realise economic recovery meant economic bailout.
 

Tea Party Patriot

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Ireland should be threatening to bring the entire Eurozone down the swanny should Eurocrats attempt force high corporation taxes upon us.
+1
 

ocoonassa

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Germany is driving growth in the 16-nation euro area as debt-strapped countries such as Ireland, Portugal and Greece grapple with a loss of investor confidence in their ability to finance themselves.

Germany’s economy, Europe’s largest, will expand 3.7pc this year, the government’s council of economic advisors forecast this week. That would be the fastest growth since 1991.

“This is an incredible number for Germany,” Andreas Scheuerle, an economist at Dekabank in Frankfurt, said of the third-quarter report. “Consumption has picked up, investment is strong. What else do you want? We’re expanding at high speed and twice our potential.”
How high is German corporation tax? I must say they do seem to be doing very well for themselves. Do they no longer attract inward investment because of their high corporation tax?
 

Tea Party Patriot

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Ireland is a small Island on the perifery of the continent. A large part of our national income is dependent on us being, for want of a better word, a tax haven. If we cease to be a tax haven we can look forward to returning to permanent 50s style emigration, anyone who thinks otherwise is gravely mistaken.
 

Scipio

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Ireland is a small Island on the perifery of the continent. A large part of our national income is dependent on us being, for want of a better word, a tax haven. If we cease to be a tax haven we can look forward to returning to permanent 50s style emigration, anyone who thinks otherwise is gravely mistaken.
We have many other things in our favour, but there's no doubt that low taxes is a key element in the mix.
Ironically, Ireland's low corporation tax can actually help investment in countries like Germany and France, despite their mania to attack us over it.

Trinity's Frank Barry covered it in this paper on the proposed Common Consolidated Corporate Tax Base.

A separate argument against harmonisation concerns the structure of the US tax regime. Technically, the “race to the bottom” results go through only when taxation is source-based as opposed to residence-based (Barba Navaretti and Venables, 2004, p.244).

As Hines and Rice (1994) explain however, the United States taxes income on a residence basis, meaning that American corporations and individuals owe taxes to the US government on all of their worldwide income, whether earned in the United States or not. In order to avoid subjecting American multinationals to double taxation, US law provides taxpayers with a foreign tax credit for income taxes (and related taxes) paid to foreign governments. The tax credit applies however to aggregated income taxes paid abroad. There are no rebates for taxes paid abroad at rates in excess of the US rate. This means that if a US company wishes for whatever reason to invest in a European country where the corporation tax rate is higher than the US rate, the existence of a low-tax-regime such as Ireland’s reduces the disincentive that the US company faces in doing this.

Thus the possibility that the use of low-tax jurisdictions by foreign investors might allow high-tax countries to maintain their tax rates while continuing to attract significant levels of foreign investment can help explain why countries have not reduced their taxation of foreign investment or of capital income to anything approximating the degree implied by many models of tax competition.
 

ocoonassa

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Ireland is a small Island on the perifery of the continent. A large part of our national income is dependent on us being, for want of a better word, a tax haven. If we cease to be a tax haven we can look forward to returning to permanent 50s style emigration, anyone who thinks otherwise is gravely mistaken.
Are the Government not already budgeting for 50's style emigration?

If we lose the tax dodgers maybe we can start exporting illicit drugs and make up the shortfall that way. Get cannabis farming on the go and that'll do the trick I think, Europe is crying out for the stuff. Wholesale I believe it's around €6,000 per kilo and the yield is about two tonnes per acre every four months. Of course we'd be a bit of a pariah but then so are tax havens. I'm not sure which of the two would attract the most stigma. ;)
 

Freedom front

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The low corporation tax rate has been abused by Fianna fail, which allowed an incompetent Government mismanage the the Irish economy using the tax rate & FDI as a cover. The Irish economy's Competitiveness has been destroyed by FF & Greens over the past 10 years.

Some examples
High prices for Housing
High wages, Grossly over paid public service
High Retail prices Foods & Clothing
High Goverment controllable charges: ESB , Eircom, Professions etc

If we move the corporate tax rate to say 20% and drive down the cost of housing, wages, retail food and textile products and the regulated government charges of electricity, communications, business rates etc

I believe we would be a far better for Ireland to have a competitive Corporation tax rate of 20% and a well managed cost competitive economy, than be a tax haven and a non competitive over priced country.
 

turdsl

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This goverment better not concede our low corporation tax to the europeans.
We the Irish were ensured it was safe under the Lisbon treaty.

We will have no say, the people who lend the money set the rules.
 

johnfás

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This goverment better not concede our low corporation tax to the europeans.
We the Irish were ensured it was safe under the Lisbon treaty.
Lisbon never had any effect on the Corporation Tax rate anyway. However, lets for a minute assume that it did and that we now have such an assurance, we can indeed exercise complete sovereignty over it. However, if we can't borrow any money and in order to access credit we decide to do things like raise corporation tax - well that's a mess of our own making really - we could cut the old aged pension instead - but try getting that through the Dáil.
 


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