The Irish economic model is premised on the ability to attract an out-sized share of Foreign Direct Investment, particularly from the US, and has been for decades. As a result, we have a vibrant multinational sector that directly or indirectly supports hundreds of thousands of jobs. There are many factors at play, but there can be little doubt that our tax regime is the key driver.
Across the political spectrum, there is near unanimous agreement that the 12.5% corporation tax rate, in place since 1998, can’t be touched. It simply isn’t seen as a policy variable. Any suggestions that this may be otherwise are quickly silenced. Moreover, protecting Ireland’s right to set its own rate has long been a diplomatic priority at EU level. Continue reading