7 ms·
> It's weird that the EU has a monetary union, but so much difference in corporate income tax rates. That's because it's a monetary union, not a fiscal union.
by talideon 9y ago
> It's weird that the EU has a monetary union, but so much difference in corporate income tax rates.
That's because it's a monetary union, not a fiscal union.
> Great that IE is 12%, but this "competition" is BS in the sense that they needed the higher-tax countries to bail them out just a few years ago:
That's based on a severe misconception. The Irish headline rate is 12.5%, but the effective rate doesn't differ much from that. Meanwhile, you have countries like France with a much higher headline rate, but an effective rate much lower than the Irish one.
So no. Ireland was not bailed out by higher tax countries. Moreover, our corporate tax rate had nothing to the financial crises, whose roots in Ireland can ultimately be traced back to the ECB keeping interest rates artificially low to help with German reunification.
- clu3l355 9y agoMoreover, Ireland was the fastest-recovering nation financial crisis, driven undoubtedly in part by its preferential corporate tax rates
- patrickk 9y agoIreland's economy is highly linked to how well the broader global economy is doing. When major US corporations look to expand during good times, Ireland often directly benefits. Ireland's domestic economy is comparatively tiny, but plenty of large industries like tech, pharma and some random ones like global aircraft leasing[1] have a large base in Ireland to support their European and sometimes global operations. [1] https://www.irishtimes.com/business/transport-and-tourism/aircraft-leasing-worth-more-than-500m-to-irish-economy-1.3363070 https://www.irishtimes.com/business/transport-and-tourism/ai...
- talideon 9y agoAgain, there's nothing particularly 'preferential' about Ireland's tax rates. Other countries, such as the aforementioned France, had much more preferential effective ones. The difference is that our rate is more transparent because the effective rate isn't all that different from the headline rate. So no, it wasn't.