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Time to Cut the Corporate Tax Rate to 5% / 3% / 1%

YesSireeeBob

Well-known member
Joined
Sep 21, 2007
Messages
721
The EU wants us to collect companies tax at the advertised rate, so let's do it.

There is no way Ireland is getting 12.5% of Multinational profits from the EU.

However, we might get 1% or 3% or 5%.

So something like this:

€0 to €500million taxed @ 12.5%
€500 to €750m taxed @ 5%
€750m to €1bn taxed @ 3%
€1bn+ taxed @ 1%


Something similar is done in the Netherlands (20% up to €200,000 of profit and 25% above) and France
33.3% (36.6% above 3.5M€, 15% below 38k€)


The US won't mind this because when / if the US company repatriates their profit to the US, they just pay the difference,
ie tax in US is 35% federal / 4% state in the US, so if a company paid 3% tax in Ireland, it means America would get the vast majority of the tax.


The rates might be low, but we would probably end up getting more tax take as there would be less subterfuge.

The EU countries won't like it but as we've heard several times this week, the CTR is a sovereign issue.

Long term of course the EU will try to make Corporate Tax payable in each country where the sales were made, which is probably the fairest thing to do.
 


HarshBuzz

Well-known member
Joined
Feb 28, 2008
Messages
11,936
A regressive tax for corporates. How novel, as Sir Humphrey would say.

Yes, that will play well with the electorate
 

Fractional Reserve

Well-known member
Joined
Apr 30, 2011
Messages
8,327
The EU wants us to collect companies tax at the advertised rate, so let's do it.

There is no way Ireland is getting 12.5% of Multinational profits from the EU.

However, we might get 1% or 3% or 5%.

So something like this:

€0 to €500million taxed @ 12.5%
€500 to €750m taxed @ 5%
€750m to €1bn taxed @ 3%
€1bn+ taxed @ 1%


Something similar is done in the Netherlands (20% up to €200,000 of profit and 25% above) and France
33.3% (36.6% above 3.5M€, 15% below 38k€)


The US won't mind this because when / if the US company repatriates their profit to the US, they just pay the difference,
ie tax in US is 35% federal / 4% state in the US, so if a company paid 3% tax in Ireland, it means America would get the vast majority of the tax.


The rates might be low, but we would probably end up getting more tax take as there would be less subterfuge.

The EU countries won't like it but as we've heard several times this week, the CTR is a sovereign issue.

Long term of course the EU will try to make Corporate Tax payable in each country where the sales were made, which is probably the fairest thing to do.
just get rid of it , their is no need for it anyways
 

Watcher2

Well-known member
Joined
May 2, 2010
Messages
34,447
The EU wants us to collect companies tax at the advertised rate, so let's do it.

There is no way Ireland is getting 12.5% of Multinational profits from the EU.

However, we might get 1% or 3% or 5%.

So something like this:

€0 to €500million taxed @ 12.5%
€500 to €750m taxed @ 5%
€750m to €1bn taxed @ 3%
€1bn+ taxed @ 1%


Something similar is done in the Netherlands (20% up to €200,000 of profit and 25% above) and France
33.3% (36.6% above 3.5M€, 15% below 38k€)


The US won't mind this because when / if the US company repatriates their profit to the US, they just pay the difference,
ie tax in US is 35% federal / 4% state in the US, so if a company paid 3% tax in Ireland, it means America would get the vast majority of the tax.


The rates might be low, but we would probably end up getting more tax take as there would be less subterfuge.

The EU countries won't like it but as we've heard several times this week, the CTR is a sovereign issue.

Long term of course the EU will try to make Corporate Tax payable in each country where the sales were made, which is probably the fairest thing to do.
Why? Is out 12.5% not competitive in the EU? Which country has a lower rate?

Jeez, this Apple ruling brings out the loonie brain farts.
 

Trainwreck

Well-known member
Joined
Sep 6, 2012
Messages
26,809
The EU wants us to collect companies tax at the advertised rate, so let's do it.

There is no way Ireland is getting 12.5% of Multinational profits from the EU.

However, we might get 1% or 3% or 5%.

So something like this:

€0 to €500million taxed @ 12.5%
€500 to €750m taxed @ 5%
€750m to €1bn taxed @ 3%
€1bn+ taxed @ 1%


Something similar is done in the Netherlands (20% up to €200,000 of profit and 25% above) and France
33.3% (36.6% above 3.5M€, 15% below 38k€)


The US won't mind this because when / if the US company repatriates their profit to the US, they just pay the difference,
ie tax in US is 35% federal / 4% state in the US, so if a company paid 3% tax in Ireland, it means America would get the vast majority of the tax.


The rates might be low, but we would probably end up getting more tax take as there would be less subterfuge.

The EU countries won't like it but as we've heard several times this week, the CTR is a sovereign issue.

Long term of course the EU will try to make Corporate Tax payable in each country where the sales were made, which is probably the fairest thing to do.

We could do that.

But I can guarantee you, that such a move would end the tax harmonistation discussion in the EU overnight. You would see widespread support for a Federal EU corporation tax.
 

YesSireeeBob

Well-known member
Joined
Sep 21, 2007
Messages
721
A regressive tax for corporates. How novel, as Sir Humphrey would say.

Yes, that will play well with the electorate
I think the electorate would be happy if we keep the multinationals in Ireland and maybe get more tax.
 

YesSireeeBob

Well-known member
Joined
Sep 21, 2007
Messages
721
We could do that.

But I can guarantee you, that such a move would end the tax harmonistation discussion in the EU overnight. You would see widespread support for a Federal EU corporation tax.
Perhaps, but it's clear we are not getting the full 12.5%.

In 2015, 80% of corporate tax came from the multinationals - €5.5 billion.
€5.5 billion is 12.5% of €44bn.
The multinationals made much more than 44bn - Apple alone had an operating income of 68bn last year, although that was worldwide it shows the massive profits these companies make.

Quite clearly there are deals / loopholes Ireland and the multinationals are using, which has drawn the attention of the EU competition people.

Why not just have an open and honest system with low rates?

The companies will probably end up paying a bit more anyhow , and they know there is political pressure on them to pay more.

The rates might seem low but they are a lot higher that 0.0005%.
 

Congalltee

Well-known member
Joined
Nov 10, 2009
Messages
6,210
A company's revenue is €200m
It's costs are €100m
It reinvests €50m in R&D and €10m in its plant.
What tax does it pay?
€5m
Judging by some commentators that €5m is either 2.5% or 5% (but not 12.5% of €40m).

Apple's issue was that large amounts of profits were not being taxed at all. Not that Ireland did not apply 12.5%.
(I'm open to correction on any of this, if I simplified things too much)
 

TedHankey

Well-known member
Joined
Oct 3, 2014
Messages
1,105
I think the electorate would be happy if we keep the multinationals in Ireland and maybe get more tax.
Personally I wouldn't care if I buy my phone off an Irish startup or a big multinational. Once it's made by some little Chinese kid all the rest is unimportant.
 

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