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Profit maximization isn't as simple as you make out. If multinationals hadn't been as eager to optimize in the short term, there wouldn't have been as much poli

Profit maximization isn't as simple as you make out. If multinationals hadn't been as eager to optimize in the short term, there wouldn't have been as much political pressure to clamp down on them, and they may have maximized profits in the longer term. Usually these things actually occur due to a race to the bottom, both in corporations - if they don't take the profits now, someone else will - and jurisdictions: regulatory arbitrage and competition occurs, and can make everyone worse off. For example, if one country gives tax incentives, then they all might be forced to; or if one country doesn't regulate pollution, then other countries may be forced to become lax. They're both collective action problems, and some kind of international agreement is generally needed to avoid the worst outcomes. The EU is probably going to bring a variant of CCTB into effect eventually to avoid this kind of thing between EU economies. It won't be good for Ireland in the short term, but I think it's a better long-term approach, if it's done fairly.

donaltroddyn 7y ago
When Ireland rejected by referendum the Lisbon Treaty in 2008, a series of clauses known as the Irish Guarantees were added. One of those guarantees is: > Nothing in the Treaty of Lisbon makes any change of any kind, for any Member State, to the extent or operation of the competence of the European Union in relation to taxation. Ireland holds a veto (as do all other EU countries) on any proposed Common Consolidated Corporate Tax Base, so the chances of a CCCTB as commonly envisaged being enacted is exactly zero.
- barrkel 7y ago
  I know they have a veto; I'm Irish. The conversation is ongoing though, and it will continue for as long as transactions move to online - i.e. for the foreseeable. The only question is finding an appropriate quid pro quo to change the status quo.

donaltroddyn 7y ago

When Ireland rejected by referendum the Lisbon Treaty in 2008, a series of clauses known as the Irish Guarantees were added. One of those guarantees is: > Nothing in the Treaty of Lisbon makes any change of any kind, for any Member State, to the extent or operation of the competence of the European Union in relation to taxation. Ireland holds a veto (as do all other EU countries) on any proposed Common Consolidated Corporate Tax Base, so the chances of a CCCTB as commonly envisaged being enacted is exactly zero.

barrkel 7y ago
I know they have a veto; I'm Irish. The conversation is ongoing though, and it will continue for as long as transactions move to online - i.e. for the foreseeable. The only question is finding an appropriate quid pro quo to change the status quo.