Dad2three
Gold Member
The same is true in Ireland. The corporation tax rate was cut drastically and a 12.5% rate was phased in up to 2003. The 10-year period of GDP growth since has been the worst in the history of the state. Yet it is still widely claimed that a low rate of corporation tax determines Irish prosperity. This claim is evidently false.
The strongest ever year of Irish growth was in 1997. This was not a part of what has become known as the ‘Celtic Tiger’ period and was six years before the 12.5% tax rate was fully phased in.
Unite s Notes On The Front Low Corporation Tax Rates for Do Not Boost Growth
OOPS
The strongest ever year of Irish growth was in 1997. This was not a part of what has become known as the ‘Celtic Tiger’ period and was six years before the 12.5% tax rate was fully phased in.
The growth before the cuts were fully phased in don't count? Why not?
36% Corp tax rate in 1997???
lol
OECD Corporate Income Tax Rates 1981-2013 Tax Foundation
36% Corp tax rate in 1997???
Is 36% too high? Tell Obama.
Weird, Obama wants to lower to 28% and close loopholes (using money to rebuild infrastructure) , instead the GOP holds onto the 35% and the EFFECTIVE rates, the ones Corps actually pay, is 12%. But isn't it up to Congress?
Thanks for agreeing having a 36% Corp tax rate in Ireland DIDN'T stop their growth though!
I agree that cutting your rate every year will give you tremendous growth.
Well you'd be wrong, as usual, lol
LOVE how you skipped right over Dragon's explanation to your narrow little brain
HERE FROM HER:
"
Toddster asked for other reasons for the Celtic Tiger growth other than tax cuts. Being a true conservative with his blinders firmly in place, he can't see anything other than low corporate tax rates.
First off, the EU invested 17 Billion Euros in Ireland's infrastructure from 1973 forward. The money was spent on education of the population, and infrastructure - thing the US resists investing in. Education made the work force more attractive to high tech firms. Improved infrastructure is essential to modern business. I say this because US infrastructure is crumbling and conservatives resist spending the money to upgrade and improve it
Membership in the EU opened up new trading markets for Irish goods. Previously, Great Britain had been Irelands largest trading partner. Wages in Ireland were lower than any other major EU country, and Irish workers speak English, which for American based companies, made communication easier.
Last but certainly not least, in the 1990's, Ireland was giving all sorts of cheap capital loans and grants, and tax incentives to companies to relocate to Ireland. Canada tried this for a while, but found that the corporations don't stay, and often don't stay long enough for the government to recoup their investment in luring them to Canada in the first place. Some other jurisdiction makes them a better offer and they leave. This sounds like a good part of why so many of these companies left. Cheaper labour elsewhere.
So to say that lowering the corporation tax rate is the sole reason for Ireland's success is to be willfully blind to the overall picture. Investment in infrastructure, and education, which Republicans have staunchly resisted, created an attractive environment for business. Relocation grants and tax breaks, sweetened the pot.
Notice how I can discuss valid reasons for the Celtic Tiger phenomenon without once mentioning the reduction of the overall corporate tax rate."
Republicans have a poor understanding of economics. They should have no place in making policy Page 57 US Message Board - Political Discussion Forum