We need a corporate tax regime for 21st century

unite white out of redIn submission to Joint Sub-Committee on Global Taxation, union says current regime failing to deliver investment and tax revenue

Ireland’s effective tax rate less than half the average of other Advanced European Economies

May 28th: Unite today presented a submission to the Oireachtas Joint Sub-Committee on Global Taxation in which the union pointed out that, at just 9 per cent, Ireland’s effective tax rate is the lowest of all advanced European economies, and less than half the average figure of 24 per cent. The union also pointed out that Ireland’s current corporate tax is failing to deliver investment and tax revenue when compared to our peer group in the EU.

Commenting on Unite’s findings, Regional Secretary Jimmy Kelly said:

“We need a corporate tax structure that is fit for the 21st century – one that can deliver jobs, investment and tax revenue to the economy.  In many areas it is increasingly clear that our current tax structure is not delivering”.

Presenting the submission to the sub-committee, Unite researcher Michael Taft said:

“If the aim of our low corporate tax rates is to encourage business investment, it is not as successful as other economies in our peer group.  Other small open economies have much higher tax rates than Ireland, much higher levels of corporate investment and much higher levels of employee compensation.

With increasing international scrutiny of our corporate tax structure it is imperative that we do not sleepwalk into another crisis – just as we did with the property bubble.  We must face up to the reality and adapt to the changing environment”, Michael Taft concluded.

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