Merkel's threat to Ireland - drop the Corporation Tax rate or no deal

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onq

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Merkel's threat to Ireland - drop the Corporation Tax rate or no deal

From: http://www.ft.com/cms/s/0/fe1530e6-4c9c-11e0-8da3-00144feab49a.html?ftcamp=rss#axzz1GOOa4RxB

The Merkel/Sarkozy siamese two headed monster pushes on with hits integration of Europe, despite the needs of peripheral countries differing from the economic hearlnad of Franco-Prussia

I think the Germans need to realise that the old choice between Boston and Berlin isn't where this could wind up.

The choice is now between Boston-Berlin - and Bejing!

ONQ.
 
Outrageous. I expect no better from the little French weasel but I didn’t expect such an ugly face from the Germans when their mask slipped.
This is akin to the smallest guy in the room holding the roof up which the two biggest guys kick him in the nuts.
For their own reasons they seem intent on destroying the Irish economy and the Irish state. If this is the future we should default now and let the whole house of cards fall.
 
I'd expect the headline rate to be unchanged this time next year but some of the loopholes that facilitate multinationals in paying a bag of magic beans in tax each year to be closed.

Corporation tax rate in the UK is 35%. Last year Barclays paid 1% of their profits in Corporation tax. The headline rate is just for show. I'd be more worried if Sarko and Merkel thought otherwise.
 
Howitzer said:
I'd expect the headline rate to be unchanged this time next year but some of the loopholes that facilitate multinationals in paying a bag of magic beans in tax each year to be closed.

Corporation tax rate in the UK is 35%. Last year Barclays paid 1% of their profits in Corporation tax. The headline rate is just for show. I'd be more worried if Sarko and Merkel thought otherwise.
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This isn't about tax, it's about control; fashioning Europe in their own image. The last time France had a leader who could swing him legs while sitting in a normal chair they were up to the same thing.
 
I agree that sarky is a bit of a git. Apparently even Merkel can't stand him. She is caught tho between a rock & a hard place. Her power is slipping, and she is increasingly vulnerable to public opinion in Germany. There may not be much room to maneuver right now. As usual with this kind of EU thing, nothing will happen til asses are backed against the wall.
 
I would tell them stick the deal, the only hope we have is our Corp tax rate, alot of company's will follow dell if it is touched, and we will 100% default if that happens, so what ever chance the fuhrer and the rest have of getting there money back with a change in that rate and they can forget about it altogether,
 
Sansan said:
I would tell them stick the deal, the only hope we have is our Corp tax rate, alot of company's will follow dell if it is touched, and we will 100% default if that happens, so what ever chance the fuhrer and the rest have of getting there money back with a change in that rate and they can forget about it altogether,
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I don't think this is factually correct. None of the multinationals are here for the 12.5% Corporation Tax rate. They don't pay 12.5% of their profits in Corporation tax, they pay a much smaller amount. They're here for the loopholes which facilitate them in paying close to 0%.
 
I work for one of the manufacturing multinationals and I can assure you the 12.5% rate is very important, recently during a company 10 year celebration one of the visiting VPs from the states mentioned it no less than 3 times during his speech.
 
Our county is on its knees and Sarkozy wants us to commit Hari Kari.

I think Mr. Sarkozy has spent too much time in his French vineyards.
 
What's the big deal here? As I understand it Enda is in the drivers seat. We won't change corporation tax and if we are really presented with a wall upon which to force our backs up against then we will default. Bang goes the evil axis of Germany & France and their dirty little economic plan to control Europe thro' means which their respective militaries were more than thrice thwarted in doing. Personally I think, predominantly for the sake of our kids, we should face them down in spite of the fact that a return to the punt would hurt me personally, my family and many irish people. They (the Germans & the French) will blink first. But then I always was a bit on the jingoistic side.
 
Time to default. We already made a huge concession to our EU ''friends'' when we ratified Lisbon 2 and it's despicable and aggressive for anyone in Europe to even touch the subject of giving up control of our corporation tax since they had already given us guarantees that it wouldn't be touched. Time to default and reject this plan from the EU to turn us into a nation of bonded serfs in perpetual slavery to pay back an unpayable debt.
 
I wonder would Enda have the nuts to put the whole issue of the bail-out to a referendum? The EU does NOT like irish referendums or their results. Let's give 'em another one to sweat about.
 
Howitzer said:
I don't think this is factually correct. None of the multinationals are here for the 12.5% Corporation Tax rate. They don't pay 12.5% of their profits in Corporation tax, they pay a much smaller amount. They're here for the loopholes which facilitate them in paying close to 0%.
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Ah, ye olde "Double Irish" that do be! Seem to remember a bit of a storm in a thimble about that re: Google last year, but seemingly they're all at it ...
 
Instead of outright default, I'd be inclined to "miss" a few payments. Ask them for the money at 0% so we can pay the amount due.
 
Whatever happened to the "guarantee" we were given before Lisbon 2 was rammed down our throats that taxation issues were a matter for the Irish government and state only??
 
Westie123 said:
Whatever happened to the "guarantee" we were given before Lisbon 2 was rammed down our throats that taxation issues were a matter for the Irish government and state only??
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They still are hence the fact that the EU can only negotiate with us to change the tax rate or base.
 
Purple said:
Outrageous. I expect no better from the little French weasel but I didn’t expect such an ugly face from the Germans when their mask slipped.
This is akin to the smallest guy in the room holding the roof up which the two biggest guys kick him in the nuts.
For their own reasons they seem intent on destroying the Irish economy and the Irish state. If this is the future we should default now and let the whole house of cards fall.
Click to expand...

I think the ugly face you refer to is the face of political desperation. The German public was largely opposed to any bailout of Greece or Ireland, and also opposed the European financial stability fund. This would have been the best thing that could have happened to Ireland.
Now that Merkel is facing the backlash from the public she is desperate to show that the bailout will work in Germany's favour. This is purely politically motivated, as Germany has absolutely nothing to gain economically if Ireland increased its corporation tax rate. France will also not become more competitive, as many multinationals do not set up shop there because of their very short working weeks.

Ancutza said:
I wonder would Enda have the nuts to put the whole issue of the bail-out to a referendum? The EU does NOT like irish referendums or their results. Let's give 'em another one to sweat about.
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This is a very good idea. But before Enda resorts to the threat of a referendum I think he should make one simple statement and ask one simple question at the next EU meeting.
Statement: Company's in Ireland pay an effective rate of x% (I forget what the exact figure is)
Question: What exactly is your effective rate of corporation tax paid?

This ought to shut them up in public.
 
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