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Time to raise the corporate tax rate?

  • 09-08-2010 12:31AM
    #1
    Registered Users, Registered Users 2 Posts: 3,872 ✭✭✭


    Interesting article in the Irish Times on the corporate tax rate.

    I have to say I am surprised this issue hasn't come up before. The state has no money. Raising corporate tax to, let's say, 15% or even 17.5%, would provide the state with the money to:
    • invest in infrastructure that industry needs
    • fund (joint) research programmes that would be of ultimate benefit to industry and the economy
    • fund university courses that train the graduates that hi-tech industries need

    Comments anyone? :)


«13

Comments

  • Moderators, Regional East Moderators Posts: 21,504 Mod ✭✭✭✭Agent Smith


    Surely its Time to Lower Corporate Tax, to encorage more foregin Investment


  • Closed Accounts Posts: 23,315 ✭✭✭✭amacachi


    There's companies who funnel profits through here to avoid tax elsewhere, fairly sure Cadbury do it for example. If we increase the rate of tax will that mean we get more tax from that company? No, we'd get 0% and the couple of dozen jobs they have to have based here would also be gone, and they're far from the only country. GDP is growing because of these foreign companies' investment, without them we're even more screwed.
    There's a number of costs that influence where companies set up. In cost terms the only thing we have in our favour in this country is the low corporation tax, while we have high wage costs and transport/shipping costs etc., so increasing the corporation tax will leave us with next to no reasons why companies would set up here.

    I'm very surprised that article was printed, it reads like someone whose never heard of the concept of Economics.


  • Closed Accounts Posts: 14,670 ✭✭✭✭Wolfe Tone


    No, its the only good thing about our economy.


  • Registered Users, Registered Users 2 Posts: 1,271 ✭✭✭kev9100


    I'm not sure. On the one hand, it does seem rather low when compared to other countires but like it or not, we need foreign investment if we ever want to get out of this recession.


  • Closed Accounts Posts: 23,315 ✭✭✭✭amacachi


    kev9100 wrote: »
    I'm not sure. On the one hand, it does seem rather low when compared to other countires but like it or not, we need foreign investment if we ever want to get out of this recession.

    Even aside from getting more investment I'd be surprised if an increase in the rate produced more than a very, very short term increase in receipts.


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  • Registered Users, Registered Users 2 Posts: 27,644 ✭✭✭✭nesf


    Low taxes encourage growth in a sector, we should be cutting corporation tax (we can't) rather than raising it.

    Our major problem is that we're spending too much not that we're taxing too little etc.


  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    View wrote: »
    Interesting article in the Irish Times on the corporate tax rate.

    I have to say I am surprised this issue hasn't come up before. The state has no money. Raising corporate tax to, let's say, 15% or even 17.5%, would provide the state with the money to:
    • invest in infrastructure that industry needs
    • fund (joint) research programmes that would be of ultimate benefit to industry and the economy
    • fund university courses that train the graduates that hi-tech industries need

    Comments anyone? :)

    go right ahead

    there wont be "industries" left for these graduates


  • Closed Accounts Posts: 3,212 ✭✭✭Jaysoose


    Only in ireland would an article come out advocating we become "less competitive" than we already are...my head hurts.


  • Banned (with Prison Access) Posts: 6,485 ✭✭✭Denerick


    Ireland has high wages, high personal income taxes (Which are going to get higher) a rather unproductive workforce, a bloated public sector, massive personal, corporate and state debt...

    Whats going in our favour? A low corporate tax rate. britain is reducing her tax rate and much of Eastern Europe is following the Irish model and has the lower tax in place. We really shouldn't be looking to damage one of our few competitive advantages left.


  • Technology & Internet Moderators Posts: 28,858 Mod ✭✭✭✭oscarBravo


    As well as the FDI arguments, there's also the long-suffering SME sector here. A hike in corporation tax is the last thing we need on top of customers with no money and banks that won't lend.


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  • Registered Users, Registered Users 2 Posts: 725 ✭✭✭rightwingdub


    Corporation tax should be cut to 8%, employers PRSI should be cut to 5% and 6% respectively as well, the costs of doing business in Ireland is far too high and need to be drastically cut.


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    It should be raised to around the 30% mark in line with other developed european countries.


  • Closed Accounts Posts: 23,315 ✭✭✭✭amacachi


    McDougal wrote: »
    It should be raised to around the 30% mark in line with other developed european countries.

    What would that achieve?


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    amacachi wrote: »
    What would that achieve?

    More tax revenue obviously


  • Technology & Internet Moderators Posts: 28,858 Mod ✭✭✭✭oscarBravo


    McDougal wrote: »
    It should be raised to around the 30% mark in line with other developed european countries.
    Why stop there? Why not raise it to 75%? Then we'd increase our corporation tax take six-fold, right?


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    oscarBravo wrote: »
    Why stop there? Why not raise it to 75%? Then we'd increase our corporation tax take six-fold, right?

    I'd prefer 100% to be honest


  • Technology & Internet Moderators Posts: 28,858 Mod ✭✭✭✭oscarBravo


    McDougal wrote: »
    I'd prefer 100% to be honest
    The technical term for which is "economic illiteracy".


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    oscarBravo wrote: »
    The technical term for which is "economic illiteracy".

    Yes yes I know. Anyone who doesn't always support lower taxation of the rich and the transnationals is a nut.

    But in all seriousness we need to push for corporate tax harmonisation accross the EU. 30% should be the rate. That will stop competition between nations and allow increased revenue for states.


  • Technology & Internet Moderators Posts: 28,858 Mod ✭✭✭✭oscarBravo


    McDougal wrote: »
    Yes yes I know. Anyone who doesn't always support lower taxation of the rich and the transnationals is a nut.
    No; anyone who thinks companies will stay in business with a higher corporation tax rate hasn't done the sums.
    But in all seriousness we need to puch for corporate tax harmonisation accross the EU. 30% should be the rate. That will stop competition between nations and allow increased revenue for states.
    ...and will cause the large multinationals to shut up shop, laying off thousands, and also force hundreds of SMEs to close. Say goodbye to the tattered remnants of the economy.


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    oscarBravo wrote: »
    No; anyone who thinks companies will stay in business with a higher corporation tax rate hasn't done the sums. ...and will cause the large multinationals to shut up shop, laying off thousands, and also force hundreds of SMEs to close. Say goodbye to the tattered remnants of the economy.

    That's rubbish. Of course the IBEC types will say if you tax them more then it will be disasterous. And in return for the increase in taxation maybe a deal can be struck where better services like broadband and cheaper ESB and water rates are provided.


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  • Technology & Internet Moderators Posts: 28,858 Mod ✭✭✭✭oscarBravo


    McDougal wrote: »
    That's rubbish. Of course the IBEC types will say if you tax them more then it will be disasterous.
    I pay corporation tax. Do you?
    And in return for the increase in taxation maybe a deal can be struck where better services like broadband and cheaper ESB and water rates are provided.
    I'm sure Intel will happily fork over 30% of their profits in return for a discount on their rates.

    Not.

    Broadband and electricity are not provided by the state. How is the state going to make them cheaper?


  • Banned (with Prison Access) Posts: 6,485 ✭✭✭Denerick


    McDougal wrote: »
    It should be raised to around the 30% mark in line with other developed european countries.

    Socialists have the uncanny ability to delude themselves into thinking the world works by punishing risk taking and entrepreneurship. The only thing worse than an exploited member of the proletariat is one who hasn't been exploited at all and who is sitting in the dole office.


  • Registered Users, Registered Users 2 Posts: 37,308 ✭✭✭✭the_syco


    View wrote: »
    Comments anyone? :)
    "Spot the shinner" is becoming easier.
    McDougal wrote: »
    It should be raised to around the 30% mark in line with other developed european countries.
    amacachi wrote: »
    What would that achieve?
    Everyone with half a brain would f**k off to Poland.

    Who ever this "Authur" person is should be taken out back and shot :pac:


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    oscarBravo wrote: »
    I pay corporation tax. Do you? I'm sure Intel will happily fork over 30% of their profits in return for a discount on their rates.

    Not.

    Broadband and electricity are not provided by the state. How is the state going to make them cheaper?

    No don't pay any corporation tax. And nation states will be held to ransom by the outrageous demands of transnational corporations. Ideally we would have a global rate of corporation tax be we may have to settle for an EU wide one.

    And Eircom should be renationalised at once and invested in so me might eventually get a half decent telecommunications service.


  • Banned (with Prison Access) Posts: 6,485 ✭✭✭Denerick


    McDougal wrote: »

    And Eircom should be renationalised at once and invested in so me might eventually get a half decent telecommunications service.

    Whats so bad with the present system? I was in America and the system is effectively monopolised over there by one or two giant companies. You can't get mobile phone credit in the corner shop, for example.


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    Denerick wrote: »
    Whats so bad with the present system? I was in America and the system is effectively monopolised over there by one or two giant companies. You can't get mobile phone credit in the corner shop, for example.

    Are you not one of those types always bitching about the quality of broadband and how it makes us uncompetitive?


  • Banned (with Prison Access) Posts: 6,485 ✭✭✭Denerick


    McDougal wrote: »
    Are you not one of those types always bitching about the quality of broadband and how it makes us uncompetitive?

    No. I've never bitched about the quality of broadband in this country and I'm only intermittently interested in economic competitiveness. However, I am amused that someone who wants corporate taxes to be 100% would have sleepless nights worrying about the quality of the telecommunications industry.


  • Registered Users, Registered Users 2 Posts: 3,834 ✭✭✭Welease


    Denerick wrote: »
    No. I've never bitched about the quality of broadband in this country and I'm only intermittently interested in economic competitiveness. However, I am amused that someone who wants corporate taxes to be 100% would have sleepless nights worrying about the quality of the telecommunications industry.

    Quality broadband infrastructure will be vital when we are all unemployed and sitting at home watching Youtube videos, wondering why companies don't bother to locate here anymore ;)


  • Closed Accounts Posts: 583 ✭✭✭McDougal


    Denerick wrote: »
    No. I've never bitched about the quality of broadband in this country and I'm only intermittently interested in economic competitiveness. However, I am amused that someone who wants corporate taxes to be 100% would have sleepless nights worrying about the quality of the telecommunications industry.

    Of course I'm concerned about the dreadful quality of broadband on offer


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  • Banned (with Prison Access) Posts: 6,485 ✭✭✭Denerick


    McDougal wrote: »
    Of course I'm concerned about the dreadful quality of broadband on offer

    Hardly the most pressing issue for a socialist revolutionary, is it?


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