3 2 mins 9 yrs

It’s really quite pathetic and it will never happen but they like to push out these press releases;

Negotiations between the Executive and the Treasury over the devolution of corporation tax powers to Northern Ireland are at a critical stage, Stormont’s Finance Minister has said. But Sammy Wilson said he believed the Exchequer’s assessment of how much would have to be sliced off Northern Ireland’s block grant if the rate was cut here was still too high.

If the tax was decreased from the UK-wide 24% maximum to the 12.5% that currently applies in the Republic of Ireland, the region could face losing an annual £700m chunk from the Treasury by 2027. Mr Wilson told the Assembly there were also outstanding issues to be resolved on what proportion of any additional revenue raised thanks to the economic and job stimulation move could be retained in Northern Ireland. It could mean increased national insurance, income tax and VAT receipts. He insisted he and fellow Executive ministers were still committed to taking control of corporation tax powers — but warned it would ultimately come down to a political decision by the UK Government.

The 12.5% CT in the Republic is painted as some sort of fiscal panacea but did it stop the Republic going bankrupt? Did it protect jobs? The Lilliputians at Stormont have not got a clue. Devolving tax varying powers to these clowns will only end in even more tears.

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3 thoughts on “THE GREAT CT FARCE

  1. If the tax was decreased from the UK-wide 24% maximum to the 12.5% that currently applies in the Republic of Ireland, the region could face losing an annual £700m chunk from the Treasury by 2027 … It could mean increased national insurance, income tax and VAT receipts.

    The Bonannos and Gambinos split up the loot.

  2. It did not stop the republic going broke but nobody would argue that it is not a good thing. In the teeth of adverse economic conditions the multinationals are one bright spot.

    http://www.irishtimes.com/newspaper/finance/2012/0713/1224319965089.html

    I think the fair thing to do with the block grant would be to reduce it over time as FDI took up the slack. The opportunities are endless and the north would be transformed if it could get job creation going. I’m not sure on what economic basis ATW would maintain that tax cuts are not a good thing.

  3. The priority should be on greatly reducing VAT which would give all consumers more to spend and thus spur the economy UK wide. I doubt many FDI companies that open operations in NI pay 24%, politicians usually sweeten the deal with much lower rates.

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