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And your point is? That work still needs doing, corporate profits are sky high. They can pay the tax and pay the workers. Also much of the money passing throug

And your point is? That work still needs doing, corporate profits are sky high. They can pay the tax and pay the workers. Also much of the money passing through Ireland is simply for tax evasion not because actual business is taking place there. It's little more than a tax haven. Here is an example of all those jobs created: https://en.wikipedia.org/wiki/Dutch_Sandwich_(tax_avoidance) https://en.wikipedia.org/wiki/Dutch_Sandwich_(tax_avoidance)

s_dev 10y ago
Dutch Sandwich and Double Irish has been discontinued. It will be completely finished by 2020. To suggest it's still going in full swing is a little disingenuous as the info by itself is a little outdated. That applies to a limited number of companies. I think his point was that Ireland tends to tax the workers rather than the companies. So those companies are still a benefit to the country.
- branchless 10y ago
  Yes but they are allowing those companies to avoid tax in the countries where the labour is being done. Lucky for them the UK is also getting desperate and instead of having it's own work is going to "attract" companies with lower corporation tax. Race you to the bottom.
  - s_dev 10y ago
    The Irish economy was carefully constructed around the 12.5% rate for decades -- the UK is foolish if it thinks this new 15% rate will work for it and can just copy it to emulate the success Ireland has seen from its own rate. The low rate works if you're a small economy with access to a much larger economy. With Brexit looming and given the size of the UK it doesn't fit either of these important criteria for the strategy to work. I think Osborne lowered the rate the prevent an exodus of companies from the UK more than attract others to it.
rmc 10y ago
My point is that it's not as bad as some of the channel islands which have one company director for every two people. Yes, the jobs need to be done, but those jobs might not be done in Ireland. Hence the Irish government and society is willing to have a low tax rate in order to get those jobs in Ireland (as opposed to USA). People in the USA might want those jobs in USA, but people in Ireland want those jobs in Ireland. The UK, with it's oodles of "crown dependencies" is a much larger tax haven.

s_dev 10y ago

Dutch Sandwich and Double Irish has been discontinued. It will be completely finished by 2020. To suggest it's still going in full swing is a little disingenuous as the info by itself is a little outdated. That applies to a limited number of companies. I think his point was that Ireland tends to tax the workers rather than the companies. So those companies are still a benefit to the country.

branchless 10y ago
Yes but they are allowing those companies to avoid tax in the countries where the labour is being done. Lucky for them the UK is also getting desperate and instead of having it's own work is going to "attract" companies with lower corporation tax. Race you to the bottom.
- s_dev 10y ago
  The Irish economy was carefully constructed around the 12.5% rate for decades -- the UK is foolish if it thinks this new 15% rate will work for it and can just copy it to emulate the success Ireland has seen from its own rate. The low rate works if you're a small economy with access to a much larger economy. With Brexit looming and given the size of the UK it doesn't fit either of these important criteria for the strategy to work. I think Osborne lowered the rate the prevent an exodus of companies from the UK more than attract others to it.

rmc 10y ago

My point is that it's not as bad as some of the channel islands which have one company director for every two people. Yes, the jobs need to be done, but those jobs might not be done in Ireland. Hence the Irish government and society is willing to have a low tax rate in order to get those jobs in Ireland (as opposed to USA). People in the USA might want those jobs in USA, but people in Ireland want those jobs in Ireland. The UK, with it's oodles of "crown dependencies" is a much larger tax haven.