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And that is not a long term plan anyway: Slovakia already imitated you Ireland on the corporation tax rate.
And of course in most countries there are thinks like commercial rates. In Germany e. g. you would add the corporation tax, solidarity surcharge and local corporation tax together and get a tax rate of 29-31%.
So the argument that commercial rates are a special Irish burden on business is not that persuasive.
S you argue that Ireland - one of the richest countries in the union - should get a special dispensation to a low corporation tax policy?
Firstly - there is no question of a "special dispensation". Corporate taxation (and most other forms of national taxation) are outside the scope of any EU Treaties and so any attempt to force Ireland to change its rates is not a function of the EU, but of imperial dominance by more powerful nations seeking to impose their interests.
Secondly, my argument is that the manner in which commercial rates are applied in Ireland is inequitable, capricious, regressive and economically inefficient. It is a matter for Ireland, and Ireland alone, to remedy this if it so chooses, and my suggestion is a revenue neutral rebalancing from struggling to profitable businesses.
Thirdly, you are correct in identify a trend for peripheral EU states to lower their rates - I suggest this is because that is the only way they can compete with the larger powers - and so in the absence of a fiscal transfer Union, this is a trend which will indeed continue.
Index of Frank's Diaries
And if just discussing this violates the sovereignity of Ireland, then perhaps you should not complain about effective tax rates in the Netherlands.
It isn't a long term strategy anyway: Tomorrow Slovakia or Estonia or indeed the Netherlands will undercut Ireland and what then? Offer a -12,5% tax rate?
Spare me the nationalistic blather
And measured in gdp pro head, Ireland is still number two in the EU behind Luxemburg.
Now you could argue that gdp per head is meaningless. But that just shows how hollow this whole "lure multinationals with low taxes and lax regulation" to Ireland strategy was. It did produce high gdp numbers, but did it produce national wealth?
In the end, Ireland is richer then e. g. Slovakia or Estonia or Portugal, surely in the top quarter of the EU.
I'm not defending the corporation tax rate - or any other Irish tax policy - either: the whole thing is part of the dumbass lack of an industrial policy, including a proper redistribuion policy, in the EU. However, given an EU that's being run in terms of national self-interest and beggar-your-neighbour economics, the Irish corporate tax rate pretty rational.
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