July 4, 2016

DON'T TAX WHAT YOU DO WANT:

British Finance Minister Cuts Corporate Taxes To Stay 'Competitive' (William Schomberg and Conor Humphries, 7/04/16, Reuters)

Ireland, where a 12.5 percent corporate tax rate has been a cornerstone of economic policy for 20 years, drawing investors such as Pfizer and Apple, said Osborne's announcement showed how quickly the EU's dynamics were changing after the Brexit vote.

"This is a very stark reminder of how the world is changing as a result of the referendum result in the United Kingdom," Public Expenditure Minister Paschal Donohoe told RTE radio.

"The tectonic plates are shifting and this is a very early sign of it. It's a sharp reminder here, to us, that your tax system and how it's structured is an essential part of our national competitiveness," Donohoe said.

Ireland's transport minister said Osborne's move was an "obvious attempt" to lure investors away from Ireland.

"If the headline figure was to come down to 12.5 percent in the UK, it would be threatening to us and we would have to adjust accordingly and make ourselves more attractive again," Shane Ross, an independent minister, said.

The Netherlands said it would review its tax rates to ensure it remained attractive. 

A race to zero benefits us all.

Posted by at July 4, 2016 4:37 PM

  

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