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

gleeful

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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.
Is it a sign then that negotiations are set to begin?
 


toconn

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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.

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.
Sorry to labour the point but you clearly stated that potentially the deficit effect of a 5% Corp tax reduction could by financed by the fact that a post Brexit reduction in the number of immigrants ( EU migrants by the way ) on long term benifits could occur ! Now that means to me that yu are saying that there are " presently " enough migrants claiming long terms benifits ! I would assume that 5% of the current Corp tax take equates to a considerable amount of cash , so do you have any evidence that migrants are claiming that level of money from the benifit system ? I doubt you do ! Let it go chap hey what ..
 

Novos

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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


Yeah cos businesses don't care about low corporation tax. Oh wait.
 

jmcc

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jmcc

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Sorry to labour the point but you clearly stated that potentially the deficit effect of a 5% Corp tax reduction could by financed by the fact that a post Brexit reduction in the number of immigrants ( EU migrants by the way ) on long term benifits could occur !
Well you do seem to have got the tense right this time. The corporation tax reduction is aimed at attracting large multinationals rather than small businesses. FDI from large multinationals creates jobs.

Now that means to me that yu are saying that there are " presently " enough migrants claiming long terms benifits !
No. I mentioned nothing about current benefits being claimed.

I would assume that 5% of the current Corp tax take equates to a considerable amount of cash , so do you have any evidence that migrants are claiming that level of money from the benifit system ? I doubt you do ! Let it go chap hey what ..
As I said, this is about the effects of a reduction of EU immigration and the payments of benefits in the future.

The whole immigration thing is used by poorer countries as a safety valve for economic stability in much the same way that it was in Ireland from the 1920s to the 1990s. The UK is a major destination for emigrants from poorer EU countries and without that freedom of movement, it puts more stress on the richer economies of the EU. This means that without the UK accepting freedom of movement in the way that it has been for the last few decades, Germany, France, Holland and some of the the EU countries will either have to accept higher levels of EU migration or increase funding to the poorer EU countries to create jobs and help their economies. But that's a very complicated argument and one that you will inevitably misunderstand.
 
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gerhard dengler

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Years before Brexit, the U.K. had committed to lowering it's rate of corporation tax

In 2010, their rate was 28%.
It was reduced gradually to 20% to 2015.
In the budget speech (2015), the Chancellor had committed to reducing the rate to 19% and to 18% by 2020.

The fact that the rate will be reduced more quickly and sooner suggests that the UK are making a determined step to attract worldwide inward investment and to try to stimulate her own economy.
 

Socratus O' Pericles

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I wonder what the next Chancellor, to be appointed by Theresa May, makes of all this.
 

ger12

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Seems they're panicking already.
 

jmcc

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Seems they're panicking already.
Both sides are and the EU position is not as unitary as some think. The French solo run on banking indicates that there may be more of this to come as EU countries try to do separate deals. The Irish government is already trying to argue that Ireland has a special case due to the shared history of Ireland and the UK.
 

ger12

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Both sides are and the EU position is not as unitary as some think. The French solo run on banking indicates that there may be more of this to come as EU countries try to do separate deals. The Irish government is already trying to argue that Ireland has a special case due to the shared history of Ireland and the UK.
While there was shock last week, I don't see the "EU" panicking tbh.

Don't kid yourself, yeh, it'll be a challenge for us with Brexit, but the "EU" won't bat an eyelid and the Brits best be holding onto their hats.
 

jmcc

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While there was shock last week, I don't see the "EU" panicking tbh.
The UK has to try break down any unified negotiating position of the EU. The tax thing is good way of doing this as it may hit the richer EU countries. The immgration and freedom of movement issue is another as it will affect the poorer EU countries.

Don't kid yourself, yeh, it'll be a challenge for us with Brexit, but the "EU" won't bat an eyelid and the Brits best be holding onto their hats.
I do realise that it will be a challenge. What a lot of people looking at things in the short term fail to realise that the Brexit may have political fallout far beyond 2016. There is a possibility of changes of government in Germany, Holland and France in the next two years and Merkel may not be in power after those elections. France may have to cope with the National Front. The Netherlands may have Wilders and be engaged on its own referendum to leave the EU. The Brexit could have kicked off the end of the EU.
 

Voluntary

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Desperate move by British to try stopping business flying away. Less burden on corps more burden on people. Someone will have to cover the costs at the end of the day.

There should be one Corp tax in EU; maybe 20% or so and extra matching taxes on dealing with countries with lower Corp tax so one like UK would gain nothing by ofering lower Corp tax.
 

robut

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Desperate move by British to try stopping business flying away. Less burden on corps more burden on people. Someone will have to cover the costs at the end of the day.

There should be one Corp tax in EU; maybe 20% or so and extra matching taxes on dealing with countries with lower Corp tax so one like UK would gain nothing by ofering lower Corp tax.
Thats all lovely, but what about the impact on IRELANDS much vaunted Corp Tax of 12.5% as a central core of our economic policy??
 

Eire1976

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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 !
More than 40,000 UK OAP's died in the winter of 2015 because they couldn't afford to put the heating on.

Says it all
 


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