Ireland Reaps Rewards

By Global Tax Weekly

I have a question. How come corporate tax receipts in Ireland account for roughly the same percentage of overall revenue – about 8 percent in 2014 – as they do in the United Kingdom (just under 10 percent in 2012) and the United States (also just under 10 percent in 2010) when corporate tax in Ireland was half the UK rate in 2012, and about a third of the US’s? I could direct that question to the Chancellor of the Exchequer in London, and the Treasury Secretary or any number of senior Congressmen in Washington, but I think they get it already. High corporate tax rates don’t necessarily produce high levels of revenue, because they encourage avoidance and discourage investment. Which is why corporate tax rates have been steadily falling all over the world in the last 10 years or so. And which probably accounts for yet another corporate tax windfall for the Irish Exchequer. I think even Francois Hollande gets it now. But I think the “high tax good, low tax bad” brigade in Brussels will take some convincing.

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