11-02-2016, 01:53 AM
(11-01-2016, 11:07 PM)SunsetBengal Wrote: So, wise one, why do you say that?
(11-01-2016, 08:17 PM)fredtoast Wrote: But the Ireland system is only successful because it is the only one in the world. It is kind of like how Las Vegas used to be so successful because it was the only place that had legal gambling. When lots of other places legalized gambling they did not all grow as popular as Vegas.
Ireland has attracted a lot of foreign investment but only involving the high end R&D. General Motors can not manufacture and sell 10 million cars in Ireland. WalMart can not operate 10 thousand stores in Ireland.
Also Ireland has other tax loopholes that allow most businesses to pay almost zero in taxes.
Meanwhile Ireland has not reduced government expenditures so someone else has been required to pay the taxes that corporations used to. If the tax cuts create massive growth in GDP then tax revenue can grow even with lower rates. But that is not what is happening in Ireland, and it is definitely not what will happen if every other country cuts corporate taxes so dramatically. Corporations do not use tax savings to pay higher wages, re-invest in growing their companies, or create new jobs. Instead the lower taxes just go to make stockholders richer.
Just look at what corporations have done with the ridiculous low interest rates. They have not borrowed money to grow their businesses. Instead they have borrowed money to buy back their own stock to drive up the price.
