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OSBORNE: UK Corporation Tax to less than 15% .. Implications for Irish Economy

robut

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https://next.ft.com/content/d5aedda0-412e-11e6-9b66-0712b3873ae1 ( PAYWALL )



Breaking: GEORGE OSBORNE tells the Financial Times he wants to lower UK corporate tax rate to <15% from 20% to galvanise economy

Where did this come from ... Now what are the implications of this for Irelands much coveted Corp tax rate of 12.5% & FDI, employment?

OK .. peeps might say that it was on the way at some point but now it could come much sooner than we thought.

Add to this if somehow article 50 is not triggered we could have the UK in the EU with pretty much the same Corporation Tax as our much vaunted rate. Another blow surely?

Thoughts please .. proper considered thoughts if possible .. interested in your genuine thoughts on this ..

EDIT: BBC now have it:

http://www.bbc.com/news/business-36699642

George Osborne has pledged to slash corporation tax to encourage businesses to still invest in the UK following the EU referendum vote.

In an interview with the Financial Times, the chancellor said he would cut the rate to below 15% - some 5% lower than its current 20% rate.

That would give the UK the lowest corporation tax of any major economy.
 
Last edited:


darkhorse

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A last ditch attempt to stop the flow of corporations and jobs out of the UK and into the EU
Wont work
Genuineeely
 

Dame_Enda

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A last ditch attempt to stop the flow of corporations and jobs out of the UK and into the EU
Wont work
Genuineeely
A market of 66 million, English speaking. I think that's very attractive to North American FDI.

If Brexit happens and is successful economically more will follow
 

ScoobyDoo

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More problematic for Ireland will be when Merkel orders Enda to raise it here.
 

olli rehn

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https://next.ft.com/content/d5aedda0-412e-11e6-9b66-0712b3873ae1 ( PAYWALL )

Breaking: GEORGE OSBORNE tells the Financial Times he wants to lower UK corporate tax rate to <15% from 20% to galvanise economy

Where did this come from ... Now what are the implications of this for Ireland?

OK .. peeps might say that it was on the way at some point but now it could come much sooner than we thought.

Add to this if somehow article 50 is not triggered we could have the UK in the EU with pretty much the same Corporation Tax as our much vaunted rate. Another blow surely?

Thoughts please .. proper considered thoughts if possible, dont be flippant please .. interested in your genuine thoughts on this ..
Cutting corporation tax means less incoming tax. Guess who has to make up for the missing dosh in the state coffers- the unemployed and the disabled are in for another cut in their benefits to balance the books !
 

jmcc

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Cutting corporation tax means less incoming tax. Guess who has to make up for the missing dosh in the state coffers- the unemployed and the disabled are in for another cut in their benefits to balance the books !
Perhaps the UK may have fewer EU immigrants on long-term benefits to worry about and that's how it intends to fund the corporation tax reduction.
 

toconn

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Perhaps the UK may have fewer EU immigrants on long-term benefits to worry about and that's how it intends to fund the corporation tax reduction.
How many EU migrants are on like by term benifits in the UK ? Any idea or is it just another bull************************ comment to blame immigrants for the UK's problems . Study's after study shows migrants make a positive contribution to the UK economy but you lads won't have it will you ? Always somebody else to blame ! Pathetic
 

olli rehn

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Perhaps the UK may have fewer EU immigrants on long-term benefits to worry about and that's how it intends to fund the corporation tax reduction.
That money will be used to increase the already overinflated salaries of the fat cats . A lot of Tories will demand their part of the loot after "mission accomplished"!
 

madmick216

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What would they do there, though? Even setting up a call centre would mean accepting the four freedoms.wouldn't it?
 

jmcc

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How many EU migrants are on like by term benifits in the UK ? Any idea or is it just another bull************************ comment to blame immigrants for the UK's problems . Study's after study shows migrants make a positive contribution to the UK economy but you lads won't have it will you ? Always somebody else to blame ! Pathetic
Obviously you are not as bright as you think you are. Most of you Happy-Clappies are not. The whole freedom of movement thing is currently a major topic along with the UK leaving the EU. If the UK introduces a points based immigration system then it will affect immigration rates from the EU if it is enforced. Now if the doom and gloom predictions for the UK's economy do play out, then it is the unskilled and low paying sectors of the UK economy that will take a big hit. This means that a lot of the low paying jobs that are often done by immigrants may disappear and as a result many of these people losing their jobs will have to apply for benefits. You probably missed the statement from Cameron about people who did not pay into the system through taxes not being able to draw benefits. Now if this occurs, and it does seem to be part of the plan, then a lot of those recent immigrants will not be able to avail of these benefits and not being able to find a new job within three months, they will have to leave the country. It is a rather Machievellian way of dealing with a problem and one that would easily be considered by the Tories and the Sir Humphreys. It is the whole "never let a good crisis go to waste" thinking. Is that a simple enough explanation for you? I did write it in drool-proof electrons.
 

wombat

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Add to this if somehow article 50 is not triggered we could have the UK in the EU with pretty much the same Corporation Tax as our much vaunted rate. Another blow surely?

Thoughts please .. proper considered thoughts if possible .. interested in your genuine thoughts on this ..
I doubt it will have a huge impact on companies deciding that they want an EU operating base. Companies are unlikely to pick the UK over Ireland based on the hope that they might change their minds and decide to remain members of the EU.
 

jmcc

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I doubt it will have a huge impact on companies deciding that they want an EU operating base. Companies are unlikely to pick the UK over Ireland based on the hope that they might change their minds and decide to remain members of the EU.
With corporate ownership, it really doesn't matter where a company is located unless the EC decided to get upset about it (Google/Apple/etc). It would be possible for a US corporation to have a UK company for FDI purposes that was owned by an EU subsidiary which was, in turn, owned by the US corporation's Cayman Islands parent corporation. These lawyers can be very creative.
 

robut

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BBC now have it:

Brexit: Osborne pledges to cut corporation tax - BBC News

George Osborne has pledged to slash corporation tax to encourage businesses to still invest in the UK following the EU referendum vote.

In an interview with the Financial Times, the chancellor said he would cut the rate to below 15% - some 5% lower than its current 20% rate.

That would give the UK the lowest corporation tax of any major economy.

.. A Treasury spokesperson confirmed the Financial Times' story was correct, but said they did not know when the cut would happen.
 

toconn

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Obviously you are not as bright as you think you are. Most of you Happy-Clappies are not. The whole freedom of movement thing is currently a major topic along with the UK leaving the EU. If the UK introduces a points based immigration system then it will affect immigration rates from the EU if it is enforced. Now if the doom and gloom predictions for the UK's economy do play out, then it is the unskilled and low paying sectors of the UK economy that will take a big hit. This means that a lot of the low paying jobs that are often done by immigrants may disappear and as a result many of these people losing their jobs will have to apply for benefits. You probably missed the statement from Cameron about people who did not pay into the system through taxes not being able to draw benefits. Now if this occurs, and it does seem to be part of the plan, then a lot of those recent immigrants will not be able to avail of these benefits and not being able to find a new job within three months, they will have to leave the country. It is a rather Machievellian way of dealing with a problem and one that would easily be considered by the Tories and the Sir Humphreys. It is the whole "never let a good crisis go to waste" thinking. Is that a simple enough explanation for you? I did write it in drool-proof electrons.
Thanks for telling me I'm not as bright as I thought , pleased you did as I was under the illusion all along . Thanks also for your " up your own arseee " claptrap but the fact is professor that you did not qualify your initial assertion . That being there are enough migrants at present claiming enough benifits that if it was halted then a cut of 5% in corporation tax could be financed without a deficit to the UK Givt coffers , that said I don't expect you can qualify it at all so I guess we should leave it there .
 

Franzoni

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Perhaps the UK may have fewer EU immigrants on long-term benefits to worry about and that's how it intends to fund the corporation tax reduction.
It's not immigrants on benefits but the 3rd and 4rd generation of people on benefits since Thatcher went to town on the North of England in the 70's and 80's.....
 

jmcc

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Thanks for telling me I'm not as bright as I thought , pleased you did as I was under the illusion all along . Thanks also for your " up your own arseee " claptrap but the fact is professor that you did not qualify your initial assertion .
This is what I wrote: "Perhaps the UK may have fewer EU immigrants on long-term benefits to worry about and that's how it intends to fund the corporation tax reduction." This is based on the UK reducing EU immigration. It is actually quite clear if you had been following recent events in the UK and the EU and had read or listened to the Remain arguments over taxes and immigration.

That being there are enough migrants at present claiming enough benifits that if it was halted then a cut of 5% in corporation tax could be financed without a deficit to the UK Givt coffers , that said I don't expect you can qualify it at all so I guess we should leave it there .
This isn't about the current situation. This is about how the things will play out in the UK and how any savings from reduced EU immigration levels and benefits payments could be used to help fund a reduction in corporation tax. You got it wrong.
 

gleeful

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This reeks of panic. I wonder what data he is seeing on FDI flows thats making him call this now and not waiting until the new Tory leader is installed.

Osbourne may not have a job in a few weeks. This policy may not be implimented.
 

jmcc

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It's not immigrants on benefits but the 3rd and 4rd generation of people on benefits since Thatcher went to town on the North of England in the 70's and 80's.....
Thatcher destroyed much of the UK. These ordinary people were going to be screwed whichever way the UK voted on Brexit. The EU immigration issue is an easy target for the Tories and one that they will have to address if the split into pro/anti EU factions is not to gather momentum.
 

jmcc

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This reeks of panic. I wonder what data he is seeing on FDI flows thats making him call this now and not waiting until the new Tory leader is installed.

Osbourne may not have a job in a few weeks. This policy may not be implimented.
It is the signalling that occurs before major political negotiations. All sides tend to bluster about what they may do if things don't work out so that they can, theoretically, get a better result from the negotiations.
 


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