However, we’re not 12 years old, so let’s have a deeper dive, as this is not showing the full picture.
For reference, multinationals (almost entirely US-based) typically use the “Green Jersey” tax evasion tactic, utilising Ireland and Jersey/Cayman, etc to avoid paying taxes in the US.
These tax avoidance techniques result in effective tax rates of ~0-2.5% https://t.co/R433UuKInX
Multinationals played a crucial role in lifting Ireland out of the last recession and they will again as we rebuild our economy after Covid.\xa0What does SF want to do? Tax them.\xa0https://t.co/B7n8esbzPN
— Leo Varadkar (@LeoVaradkar) October 11, 2020
However, we’re not 12 years old, so let’s have a deeper dive, as this is not showing the full picture.
In reality, largest threat is from US and EU tax reform. Take Biden’s tax reform proposals, which targets US MNC offshoring/“GILTI” profits
I would wager targeting these techniques is popular on both sides of the isle in America.
Which coincidentally, FG also views as a good thing. https://t.co/jvi5hSGEd1
Multinationals already pay 79% of all corporation tax while creating hundreds of thousands of jobs. Why do SF want to drive them out of Ireland? https://t.co/odmHszBgK7
— Neale Richmond (@nealerichmond) October 11, 2020
80% of corporate taxes, 50% of income taxes, 1/4 of private sector employment.
Maybe, except that portion is also hugely subsidised via the tax system. Not only their expenditures, but foreign employees (SARP) too
The moment those tax advantages go away, so do those offices/jobs
Then US MNCs start to shift their IP back to the US, which eliminates the cost advantages to having Irish offices/employees. Apple/MFST have 100k employees, one office of 3k is nothing
We’ve spent 30 years developing the most sophisticated tax avoidance system on Earth, and ignored the domestic econ
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