Recently I wrote that the Obama administration wants us to believe that 2% growth in our GDP is the “new normal.” There’s this reason. There’s that reason. And don’t forget, “we’re doing better than Europe.” So, it was probably a mild shock (producing a few wet pants crotches) when li’l ol’ Ireland posted a 26% rise in GDP.
[Source: Ireland’s GDP Up Stunning 26%; Expect France to Whine, by Mike Shedlock]
Bloomberg reports Ireland Stuns World With 26% Economic Growth Rate. How did this small nation that suffered mightily from the Great Recession come booming back?
Irish gross domestic product rose 26.3 percent in 2015 their Central Statistics Office reported. Admittedly, the giant bump is partly linked to business firms relocating to Ireland. Why are business firms relocating to Ireland, ask you? Do they hope all that rain will “grow” their businesses? No, answer I. They are doing it because of the low business tax rate!
By contrast, our fearless leader has made US Corporate taxes the highest in the Organisation (their spelling, not mine) for Economic Co‑operation and Development (OECD).
Corporate Tax Rates
|Country||Corporate Tax Rate %||Highest||Lowest|
|Euro area Average||24.6||36.8||24.3|
|European Union Average||22.8||35.2||22.8|
Ireland vs. EMU (Eurozone) and EU
- Ireland Corporate Tax Rate: 12.5%.
- EMU (Economic and Monetary Union) Average Rate: 25.6%.
- EU Average Rate: 22.8%.
- US rate stands at 38.90 percent and averaged 39.21 percent from 2000 until 2016.
The rest of the EU is upset at Ireland because of its low corporate tax rate. Whine, whine, and wince!
The US GDP was $17.95 trillion in 2015. We could, in one year, increase our GDP to $22.62 trillion if we were as fortunate as Ireland. Of course, many of those corporation moving to Ireland are US corporations trying to escape our enormous tax burden.
This is another progressive/statist/altruist concept that is up side down. “Corporations must pay their fair share! We would all rather be poorer than to allow a corporation to be richer!” What a bunch of Ultramaroons, as Bugs Bunny would say.