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I have to think all of this is just global political jostling -- you're seeing the same thing happen here in the US with tax inversion headlines. Issues like th
by anemitz 12y ago
I have to think all of this is just global political jostling -- you're seeing the same thing happen here in the US with tax inversion headlines. Issues like this poll well.
In the US, no politician wants to attempt true tax reform since it's basically a non-starter so instead we have a game of quick-wins. Yes, it makes the public feel good but doesn't actually help simplify the tax code to promote business and limit avoidance ROI.
By the time Ireland's new tax laws become enforceable (2020-ish), you'll see all of these companies re-evaluate their office locations within the tariff-free member states. Who knows, maybe the next Ireland will be in Liechtenstein, Turkey, San Marino, Monaco, or Andorra -- I think they are non-EU but participate in the single market.
The iterations of corporate tax avoidance are pretty fun to watch -- and even more interesting to try and understand. Can't wait to see what the lawyers cook up next:)
- nickff 12y agoIf the US simplified the tax system, congressmen would no longer be able to dole out industry and company-specific tax breaks as 'favors' to donors and supporters. These targeted tax breaks also serve to show that the elected representatives are 'taking action' to do things like 'create jobs' and 'reduce unemployment'.
- dragonwriter 12y agoYes, they could. The particular method of simplification would, no doubt, be a handout to a favored constituency at the expense of others, and, in any case, the simplification wouldn't prevent future handouts in any way.