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Some math is needed here, but intuition tells me 20% of X companies is more than 1% of X + Y companies, Y being those who decide to evade taxes by being incorpo
by jk7tarYZAQNpTQa 5y ago
Some math is needed here, but intuition tells me 20% of X companies is more than 1% of X + Y companies, Y being those who decide to evade taxes by being incorporated in Ireland.
- cj 5y agoMy interpretation of the grandparents comment is the $6B in revenue (probably from outside Ireland) would not be subject to the 20% tax, while they are subject to 1% tax. So by raising taxes to 20%, you lose all foreign companies like Uber paying 1%, which may very well add up to much more than purely revenue originating within Ireland. I could be completely wrong, I’m not a tax lawyer
- johannes1234321 5y agoMind that currently they take 1% of all EU revenues of international corporations. For a "fair" scheme they would tax on their share of revenue. Irish GDP is about 2.5% of EU GDP. 20% of 2.5% is 0.5% So with the current scheme they make double. And yes, that calculation is wrong in many ways. On the one side the current GDP is increased due to the tax business (they are 1% of population) on the other hand there are still many company's not doing the Irish game. And yes, I ignored the Dutch for this calculation ...