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Fodla32

Real Corporate Tax Rate in Free State 2.6% - not 12.5%

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A very interesting article, which shows that the average US multinational in Ireland makes profits of $970,000 on each Irish employee, and actually only pays a tax rate of 2.6%, not the 12.5% the government pretends is being paid. Some of the multinationals manage not to pay any corporate tax at all.

 

http://www.finfacts.ie/irishfinancenews/article_1026577.shtml

 

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It's interesting that the real corporate tax rate being paid in the USA is about 12.5% (even though the official figure is 35%) - and that's what these companies are coming to Ireland to avoid.

 

If you ever wondered how 1% of the population of the earth can own 50% of it's wealth, well, the fact that they don't pay any taxes comes into it.

 

It seems to me that there isn't much Ireland can do about these companies' tax avoidance and money laundering schemes.  There will always be some state desperate enough to welcome them.  But, we should be aware of the pros and cons.  The free state spends 40 billion a year in its budget - 20 billion on social security.  Multinationals only pay 2 billion of that in corporate tax. They do employ 180,000 workers, but 70% of those are foreign workers. This suits the landlords and landowners down to the ground, as it shoves up rents and land prices, but it really doesn't suit the native worker or the native economy.  On balance, I would say we are loosing more than we are gaining by hosting these companies, but Leinster House functions to enrich the Irish landowners - not to further the interests of either the Irish worker or the Irish entrepreneur.

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