Here’s a thought. Lower corporate taxes.


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?

ireland-gdp

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
Austria 25 55 25
Belgium 33 48 33
Bulgaria 10 40.2 10
Croatia 20 20.32 20
Cyprus 12.5 29 10
Czech Republic 19 45 19
Denmark 23.5 50 23.5
Estonia 20 26 20
Finland 20 61.8 20
France 33.3 50 33.3
Germany 29.65 56.8 29.4
Greece 29 49 20
Hungary 19 50 16
Ireland 12.5 50 12.5
Italy 31.4 53.2 31.4
Latvia 15 29 15
Lithuania 15 20 15
Luxembourg 29.22 40.29 28.6
Malta 35 35 35
Netherlands 25 48 25
Poland 19 40 19
Portugal 21 55.1 21
Romania 16 38 16
Slovakia 22 45 19
Slovenia 17 25 17
Spain 28 35 28
Sweden 22 60.1 22
United Kingdom 20 52 20
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.

imgresThis 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.

 

 

Roy Filly

 

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About Roy Filly

Please read my first blog in which I describe myself and my goals.
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One Response to Here’s a thought. Lower corporate taxes.

  1. Bill Grisham CPA says:

    I have a better thought! How about abolishing the Income Tax for Individual Human Beings! They have to live off their earnings. Corporations deduct all the expenses of doing business before having the tax applied. Individuals pay tax on their GROSS INCOME before the expenses of living life are even paid! This is nothing but legalized theft and since the government is in love with subsidizing some of those corporations, it impoverishes many poor and middle class individuals.

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