Ireland technically out of recession

[pineapple stu]

What month is that for? CT takes will vary wildly with month I'd imagine, as you'd have something like half of all companies would have December year-ends, and so would pay most of their tax in November (one month before), with the balance in the summer (the exact month has probably changed since I was in practice).

Don't forget that increasing tax could have a negative effect as well if companies up and leave because of it. Given how reluctant the Government are to change CT, I'd imagine they've possibly suggested an increase and been told where to go.

[dahamsta]

Fr Damo, please include a link to quoted content.

Personally I think the new government should put corporation tax up by .5% per year for each year of their term, with a legislative cap on further increases beyond 15% for 5-10 years. It still leaves us with a great rate, and it makes it easier for corporations to deal with, hopefully preventing an exodus (on any level; the idea that they'd all just up and leave is nonsense, pure and simple).

However it's far more important to close the loopholes the likes of Google are exercising to pay effective rates less than 5%. That's just criminal.

[pineapple stu]

(on any level; the idea that they'd all just up and leave is nonsense, pure and simple).

I don't think anyone's suggesting that. The elasticity of the CT is important though - whether a ½% rise in the rate will actually lead to more cash.

Unfortunately, it seems like big business has the country completely bitch-whipped - the banks being the obvious example, but there was also the example of the chewing gum industry managing to shout down the proposed 5p levy on chewing gum packs to cover the cost of cleaning it off paths. We need to start running the country like a company - running it competitively (i.e. none of this "ESB aren't allowed compete" rubbish") and making decisions in the country's interest, and not in that of big business. I don't see any of the parties really offering that though.

[Fr Damo]

A couple of points,


1) if a 72m take is up 78% on last Jan last year it means they collected about 40m last Jan 2010. Yet for the year they gathered close to 4billon. Therefore Stu is right phasing must be considered.

2) If exports are at 160 odd billion and these companies alone are taking 10% return on sales that's 16billon to be taxed at 12.5% or about 2b in tax. The real economy (i.e indegious, internal suppliers whose goods are servises remain largley within the state) are being taxed a further 2billon and that is an unfair burden in my opinion.

3) Elasticity is the key as stu says and personally 3% is nothing in the scheme of things and considering labour rates and in other input costs are failing, Corpo tax at 15% would still leave Ireland Inc a very competitive site for investment.

We need to get another 100,000 working in the real economy to fuel some sore of consumption/internal demand, this will increase indirect taxation thus reducing the need on labour taxes.
I wouldn't say no to another 50,000 high end jobs, then let 100,000 leave these shores We then leave 150000 signing on. This would be an unemploymet rate of 7.5% of 2m work force.

My underlying point though is we need to tax Ireland Inc more, and reduce the burden on MR and Mrs PAYE with the objective they spend a bit more.