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Merrill Lynch weighs in on the Irish Corporation Tax debate;

“Ireland could raise its 12.5pc corporation tax rate by a “moderate” amount and not hurt multinational investment here, the largest bank in the US has claimed.

If Ireland raised the rate by a small amount, it could also lead to a reduction in interest on the country’s €85bn bailout package, Bank of America Merrill Lynch claimed in a note. The bank, the result of a merger at the height of the financial crisis, said simply saying multinational investment would flee from Ireland because of any change was “premature”.

“In the short run, a moderate increase in the corporate tax rate can have the advantage of increasing tax revenue,” its analysts said. “In 2010, revenue from corporate taxation was €4.2bn [2pc of GDP]. An increase in the corporate tax rate from 12.5pc to 20pc [still below the average of the eurozone top statutory rate equal to 26pc] would allow the Government to raise an additional €2.5bn in revenue,” it explained

Meanwhile, the EU is not moving away from the position that Ireland will get a reduction in the EXTORTIONATE Interest Rate being charged on its massive bail-out loan IF it makes a proposal to increase Corporation Tax. As you know, Irish politicians insist they will not accept an increase in this rate. It appears no-one has told them that they no longer run the economy….

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4 thoughts on “WHY CORPORATION TAX SHOULD INCREASE…

  1. In the short run, a moderate increase in the corporate tax rate can have the advantage of increasing tax revenue,” said Banksters of America Merril Lynch.

    Advantage? To whom? “Increasing tax revenue” or more correctly, plundering yet more is never, ever, and advantage to anyone outside of the corporate state.

    I smell a rat here. My gob wouldn’t be smacked to discover that Merril Lynch is one of the creditors for whom the next three generations of Irish must eat dirt. Rather than (inevitably) default on a higher interest rate, it may well be that ML is looking to bring the interest rate down to keep the payments flowing. Screw’em.

    Ireland could raise its 12.5pc corporation tax rate by a “moderate” amount and not hurt multinational investment here, the largest bank in the US has claimed.

    So why do it then if not to oil the wheels of slavery? We know that corporations do not pay tax. In the main, workers pay corporation tax via lower wages. Merril Lynch is advocating that the working Irish man has his wages suppressed and that this would be an “advantage”. Not to the Irish working man. Screw Merril Lynch.

  2. ” As you know, Irish politicians insist they will not accept an increase in this rate. It appears no-one has told them that they no longer run the economy….”

    They can not possibly, be that stupid… surely?

    It is not humanly possible to be that dense.

  3. And people ‘voted’ for them?

    Good grief, all is lost it seems !

    Turkeys, really do vote for christmas after all.

    Mugs?

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