IRELAND TAX REFORM 2011

Ireland Tax Reform

The Irish corporate tax rate is 12% and the actual level collected is 11.9%. This is above the actual amount collected by either France or Germany when you take into account exemptions available in those countries. Some 25% of French companies manage to pay no corporate tax. By keeping the headline rate low and the system very simple it makes it hugely attractive for business as you are not reliant on exemptions. It is such an integral part of Ireland’s industrial strategy that it would cause a huge drop in government revenue. Minimum wage cut and more taxes for the lowest earners won’t make Ireland more progressive. I don’t think every other EU country by trying to attract companies to move to Ireland on the basis of lower wages and lower corporation tax than other EU countries.

My personal suggestion is corporate tax should be higher in the long term.

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