Posted on 10/20/2004 8:34:31 PM PDT by Murtyo
ICTU's (Irish Congress of Trade Unions) economic advisor has said Ireland's low rate of corporate tax is unsustainable and is fuelling what he called a 'race to the bottom'.
Paul Sweeney, speaking at CORI's annual social policy conference, said the reduction of the rate to 12.5% was a 'major mistake', as an industrial policy based on artificial subsidies was not sustainable.
He said the enlargement of the EU meant that Ireland was being pursued by new members in the tax competition race, citing Estonia, which has a rate of zero for many firms. 'This is a race Ireland cannot win,' he said.
Mr Sweeney said the competition to attract investment could lead to a lowering of standards in areas such as labour regulations and health and safety.
He said the cuts in corporation tax were a huge subsidy to businesses in the financial and non-trading sectors, with no quid pro quo requested in return.
Mr Sweeney called for the standard corporation tax rate to be raised 'in time' to 0%, in coordination with the EU, while what he called 'super-profits' from sectors where there was weak competition should also be taxed.
* The burden of taxation in Ireland rose strongly in 2003 but Ireland continues to have one of the lowest tax burdens in the industrialised world.
That is one of the findings of an international survey of taxation published by the OECD in Paris today.
Whoever eliminates corporate taxes gets corporate headquarters. Stockholders should sack any leadership that keeps their outfits in high tax environments.
No matter how often Supply Side economics and low taxation succeeds wildly in improving everyone's lot by fostering investment and hard work, the Socialists never "get it", do they?
Actually, I think they do get it. That's why they fight so hard against Supply Side and low taxation. They know it's the end of their schemes.
"Ireland continues to have one of the lowest tax burdens in the industrialised world."
Perhaps that's why it's one of the only economies in Europe that is actually expanding and has low inflation and low unemployment.
The complete opposite is a proven fact! Coporate tax reductions are the formula for mega-success, ESPECIALLY in the unexpected rise of the Celtic Tiger (the vibrant Irish economic growth machine).
For the first time in history (thanks to this corporate growth) the per capita income of Ireland exceeds that of the UK. This socialist lying moron wants nothing less than to kill the goose that laid the golden eggs!
100 years ago you would of been laughed at for saying the Irish would be wealther than the English.
I'll bet the several thousand Irish who have manufacturing jobs for IBM that once were here in Vermont would disagree.
Ireland CAN win the low-tax race. Germany, France and most of the others won't even try. Sure Germany and France have made tiny trims around the fringes but Ireland is still attracting a lot of economic investment from what I hear.
Indeed, indeed. I was just in Ireland, and the sad fact is that much of the corporate presence there would shift out of the country in a heartbeat if they could get a better deal elsewhere in the EU. This arsehole better shut up and get with the program, before he and his ilk screw the whole sweet deal up.
Socialism is group, slow-motion suicide.
EU-rope is leaning on the Irish to join their suicide cult. Pity.
But according to the socialist bureaucrats, corporations can only do that with subsidies. har har.
You know that's going to be a real forward looking event.
Is that so? I thought it would happen at some point; didn't realize that it had already. Cool!
more coincidental i think
Ironically it was Ireland that has been most loyal to Iron Lady Margaret Thatcher style reforms. They had to, in order to keep pace with the Brits during the 1980's. They just kept going with solid economic reforms (low taxes) when the Brits stagnated under the socialists, and it continues to pay off big time for the Celtic Tiger.
I was just in Dublin. Very prosperous little Zurich on the Irish Sea, it appeared to me.
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