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

Equinox

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My opinion is Corporation Tax is too easily avoided for the big boys.
I would scrap it and bring in a minimum wage that was significantly higher. That was the workers would be paying the tax the companies are avoiding. Everyone would be better off . Except the multi nationals.
...who would accelerate the move of any labour intensive aspect of what they do to nations witih low wage costs leaving you with expensive brass plate operations that employ a few essential staff.
 


Roberto Jordan

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It's time the corporate tax is set EU wide and the race to the bottom is ended once and for all.
What race to teh bottom?

And without an incentive of some description how do entire countries on the peripherary , such as Ireland, avoid becoming the EU's equivalent of Maine, the shetland islands or the Kola penninsula?
 

patslatt

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What race to teh bottom?

And without an incentive of some description how do entire countries on the peripherary , such as Ireland, avoid becoming the EU's equivalent of Maine, the shetland islands or the Kola penninsula?
This is something which should have been addressed a long time ago, however as this isn't populist enough and electorate often links Capital Gains with opportunistic bankers - there's simply no political gain to be earned from this so why bother.
When the FF led government cut CG tax rates in the Celtic Tiger, there was a surge in CG tax revenues. Also, economic growth would benefit as assets and businesses locked in by the high CG tax rate would be sold off under a lower rate and bought by managers more likely to manage them efficiently.
 

Watcher2

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We have a population for one thing we are near Europe and fast access to them .we don't get hurricanes battering us .It 2.8 from the USA .making comparison with multinationals factories setting up here or Bermunda we win hands down .i haven't been in lots of countries so what , and I have traded and bought goods from countries I never set foot in .
I suppose Isle of Man, Guernsey etc also suffer hurricanes? Fact of the matter is, MNCs don't want to be known for setting up operations in zero tax countries. They see it as bad for business, bad PR. They like Ireland's veneer of taxes paid but want our shady, lesser known zero rate but the rest of the world has cottoned on and these structures will be completely irradiated in four years.
 

Watcher2

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COMPLETELY UNCOMPETITIVE CAPITAL GAINS TAX

CG tax is 33% in the Irish Republic v 20% in Northern Ireland and UK. With no allowance for inflation, that 33% on phoney inflationary gains could amount to 50% to 70% on old assets sold. See http://www.politics.ie/forum/econom...-20-contrasts-irelands-very-high-33-rate.html

Why doesn't the Minister of Finance Noonan wake up to this competitive threat to the economy from lower UK rates? Why is the Irish media failing to notice the threat? Are they distracted by water charges in the way that Orangemen are distracted by the demand to march down Garvaghy Road?
We need more than rates to be competitive. We need better education and a developed "international" provision. We need better transport, better policing, better health, better lifestyle offerings. The weather is against us, particularly rubbish and unpredictable summers. And we need better laws and enforcement. Our inconsistent enforcement is unreliable. It needs to be reliable, provide clarity. We have none of that. The politicians need to wake up to these realities.
 

patslatt

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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 !
STATIC MODEL

That model assumes pessimistically that the cut in tax would not generate much new business.
 

patslatt

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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.
MOBILE YOUNG IMMIGRANTS. LITTLE POINT TO POINTS BASED IMMIGRATION.

Their mobility gives them an advantage in job seeking since they move to where the jobs are instead of waiting for jobs to come to them.

As for points based immigration systems,they have largely been diluted by Australia and Canada in favour of employer job offers. Employers who pay wages know far better what skills are needed than government officials trying to determine the worth of qualifications in foreign countries. For instance, India's universities range in quality from among the world's best to those whose degrees are for sale.
 

patslatt

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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.....
Given that Chinese emigrate all over the world, is it too much to expect young North of England people to move a few hundred miles south for work?
 

YesSireeeBob

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Theresa May to give Britain lowest corporation tax of world's top 20 economies - Independent.ie

More talk of lower than 15% corporation tax and it might be sooner than expected.

Theresa May will offer British business an olive branch following a series of disputes by vowing to cut corporation tax to a record low.

In a speech to business leaders ahead of the Autumn Statement, Mrs May will commit Britain to having the lowest corporation tax of the world’s 20 biggest economies.

It suggests that the Government will cut corporation tax further and faster than expected, potentially going lower than the 15 per cent rate promised by Donald Trump ahead of the US presidential election.Britain’s corporation tax is due to fall to 17 per cent by 2020.

However, her comments suggest that she is prepared to cut it much more quickly than had been anticipated.

“We will also review the support we give innovative firms through the tax system,” Mrs May will say. “Because my aim is not simply for the UK to have the lowest corporate tax rate in the G20, but also one that is profoundly pro-innovation.”
 

gleeful

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Theresa May to give Britain lowest corporation tax of world's top 20 economies - Independent.ie

More talk of lower than 15% corporation tax and it might be sooner than expected.
A UK outside of the EU isnt in competition with Ireland. Theyd have to make corp tax negative to balance the damage to industry of leaving the EU.

This announcement likely has the US in mind. Trump is proposing a massive tax cut for Wall St - which is the real competition for City jobs post brexit.
 

Betson

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A UK outside of the EU isnt in competition with Ireland. Theyd have to make corp tax negative to balance the damage to industry of leaving the EU.
.
Unless of course they manage to get a good deal out of Europe that lets them retain single market access , but reducing corporation tax to such lows should make it harder for them to secure a deal that involves single market access as EU countries wound only be cutting their own throats to allow that to happen.
 


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