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Corporate Tax competitiveness myth

  • 02-06-2015 5:50pm
    #1
    Closed Accounts Posts: 4,981 ✭✭✭


    Good article here (especially good graph at start), outlining how there is no evidence that Irelands historically low corporate tax rate, played any significant part in our economic growth over the years - and that instead, the biggest contribution was our entry to the European Single Market:
    http://foolsgold.international/did-irelands-12-5-percent-corporate-tax-rate-cause-the-celtic-tiger/

    Another good article from the same group (reposted at NC), outlines how the idea of countries being 'competitive' in this manner, is ill-defined (with the word 'competitiveness' not really having a specific definition), doesn't really have any evidence of benefit, and how the standard 'competitiveness' narrative doesn't make sense when examined more closely (as deconstructed by the Financial Times leading editor, Martin Wolf):
    http://www.nakedcapitalism.com/2015/06/the-notion-of-the-competitiveness-of-countries-is-nonsense.html

    Yet another good article, outlining how related deregulation of the financial industry, didn't really play more than (at most) a supporting role in our 90's economic boom, but played a primary role in our unsustainable 00's private-debt-based-boom:
    http://foolsgold.international/the-celtic-tiger-the-irish-banking-inquiry-and-a-tale-of-two-booms/

    Given this, there's a debate to be had over Ireland's very low Corporate Tax rate, and how a modest increase is likely to provide more of a direct measurable benefit, than an indirect theoretical/unquantifiable loss (which is mostly composed of scaremongering about flighty businesses/companies - when there is not much evidence to back this up).

    Personally, I would still be in favour of low corporate taxes in good economic times, but in bad economic times like now, given the lack of evidence of a net-loss negative effect from increasing CT rates, it should be increased to lessen the tax load placed on the rest of the economy, and to lessen the load caused by Public Debt and interest payments - freeing up more money to boost employment and bring recovery.

    Even if it increases the tax load on Irish business, it will be bringing in more foreign money that passes through Ireland for companies domiciled here, giving plenty of room for an increased net-positive flow of money into Ireland - so it's about time this sacred cow was slaughtered.


Comments

  • Closed Accounts Posts: 4,981 ✭✭✭KomradeBishop


    Excellent article building from these earlier ones, again examining Ireland, and evaluating our history as an 'offshore financial center' i.e. tax haven - which has been created with little-to-no democratic consultation - and how we have played a major part in enabling fraud-through-negligence, through refusing to regulate this 'offshore' financial center:
    http://www.nakedcapitalism.com/2015/11/how-ireland-became-an-offshore-financial-center.html

    It delves into how we have been assisting companies in withholding billions in taxes from authorities in other countries - to little financial benefit of anyone other than the companies themselves - and how we have facilitated criminal/fraudulent shell companies, executing criminal scams around the world, as well as our role in magnifying the worldwide 2008 financial crisis.

    Really excellent examination, of the kind of highly informative quality/perspective, that you don't get to see very often.


  • Moderators, Entertainment Moderators, Politics Moderators Posts: 14,460 Mod ✭✭✭✭johnnyskeleton


    Mod Note:

    I have locked this thread because the OP is unable to reply here so it would be unfair to him to allow people to comment on it. However, if anyone wants to start up a thread on this issue feel free.


This discussion has been closed.
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