Two technical/pedantic points on the Revenue's Corporation Tax returns publication:
1) It only covers Corporation Tax registered companies. So excludes a lot of self-employed and most of public sector. For example, the Revenue's publication only covered €14bn of the €21bn PAYE & self-assessed income tax in 2021. Though it would account for the bulk of the private sector.
2) The Foreign Multinational category includes entities here that primarily sell goods & services to the domestic market - like Retail & Wholesale. They'd be in Ireland regardless of the IDA.
But the shares are still high if you try to isolate it to foreign 'export-orientated' sectors (Manufacturing, ITC, Professional Technical). And you could argue the multiplier effects and so forth are higher in those companies. Clearly a huge contribution to the state coffers directly through these taxes and indirectly through their employees' post-tax income being spent.
Thanks for the podcast - as always!
Two technical/pedantic points on the Revenue's Corporation Tax returns publication:
1) It only covers Corporation Tax registered companies. So excludes a lot of self-employed and most of public sector. For example, the Revenue's publication only covered €14bn of the €21bn PAYE & self-assessed income tax in 2021. Though it would account for the bulk of the private sector.
2) The Foreign Multinational category includes entities here that primarily sell goods & services to the domestic market - like Retail & Wholesale. They'd be in Ireland regardless of the IDA.
But the shares are still high if you try to isolate it to foreign 'export-orientated' sectors (Manufacturing, ITC, Professional Technical). And you could argue the multiplier effects and so forth are higher in those companies. Clearly a huge contribution to the state coffers directly through these taxes and indirectly through their employees' post-tax income being spent.
Highly informative podcast as usual Jim and Chris.
One important point I would like to pick up on is that I don't agree that Sinn Féin is moving towards the political centre ground. Perhaps in PR terms they will do a few things such as send Michelle O'Neill to the King's coronation, abstain on a vote on the Special Criminal Court, or meet a few business leaders, but economically they are still exactly where they have been for years. Their tax policies and their housing policies have not shifted, to my knowledge.
Recent budget submissions by Sinn Féin showed that they intend to target Ireland's higher earners, private capital and employers. They believe they can extract even more from those who already pay the most. Ireland's current wealth taxes include Gift Tax, Inheritance Tax, Local Property Tax and Capital Gains Tax. Sinn Féin say they will introduce a tax on private capital itself, not just on capital gains, by means of a so-called Net Wealth Tax. Sinn Féin say they can put more taxes on higher earners and on private wealth and that the result will be more revenue for the State. Their supposition is that high earning FDI employees, for example, are willing to stay here when their personal tax credits are reduced or removed. It is also assumed that those earning over €140,000 will be willing to put up with a new 3% levy. Employers' PRSI is to be increased. SARP is to be abolished. CGT is to be increased for higher earners. CAT will also be increased and the children's inheritance threshold will be reduced. The Standard Pension Fund Threshold is to be reduced, as is the Pension Earnings Limit. Heavy stuff for sure. My question: is it realistic to assume that economic activity and tax receipts would not be negatively affected by these new left wing taxes; that one of the most globalised countries in the world, benefitting enormously from high levels of FDI employment, taxation and spending, would not be negatively affected?