This week’s publication of bumper corporation-tax receipts reflects largely increased income from multinational companies. It comes hot on the heels of a regular financial-health warning that, were it not for the multinational sector, this tax wouldn’t be generated.
In June, a report from the Public Accounts Committee recommended the Department of Finance should identity ways to reduce our “over-reliance” on corporation tax. The Irish Fiscal Advisory Council issued a similar dire warning last month.
The implication here is that the tax take is in some way fragile or about to evaporate at the stroke of a corporate pen somewhere far away. As a result, much of the commentary about the Irish corporation-tax take seems to suggest that we should not count on it.
Obviously, counting on transient revenues is the way to go bust if the flow of such cash is patently temporary, but the tax take from the multinationals is not temporary. It has been flowing for a long, long time and there is no reason to believe that it is about to come to an abrupt halt.
Before we focus on why the multinational revenue is steady and likely to remain so, let me introduce you to what I call the AYB School of Economics. AYB stands for “ah yeah but . . . ”.
This is the school that reacts to news of an increase in the corporatio- tax take with the takedown “ah yeah but, that’s only the multinationals”; or it dismisses an increase in employment with the “ah yeah but, that’s only the multinationals”, or it writes-off an increase in commercial office space demand in Dublin with the “ah yeah but, it’s only the multinationals”.
The AYB School of Economics suffers from commercial attachment issues, based on mercantile insecurity and a proto-nativist, almost Trumpian misunderstanding of globalisation. The deep-seated AYB fear of foreigners governs much of its thinking.
At the moment the AYBs are worried about immediate volatility in the tax take, but this is only the latest in a long list of concerns, reflecting an assumption that the presence of multinationals in Ireland is transient.
The supposition is that simply because these firms are not headquartered in Ireland, using Irish-based capital (whatever that means), or don’t have a board made up of Irish citizens, in some way their presence in the economy is illegitimate and built on sand.
AYBs live in constant fear of being dumped. As a result, income tax, employment, demand and most obviously corporation tax created by and garnered from these companies shouldn’t be counted in the same way as corporation tax paid by an Irish sweet shop.
Why is there a sense that the multinational corporations are not here for the long haul when all the evidence is that they are not pulling out of Ireland but piling in? What informs the AYB School of Economics? Could it be an Irish thing based on childhood experiences two generations ago of poverty and economic neglect?
The British don’t have it. Nor do the Belgians.
In the past I worked in the City of London for two large multinational banks, one Swiss, the other French. My wife also worked for a Japanese bank. Around us, within the Square Mile, banks and finance companies from all over the world – German, American, Chinese, Australian, South African, Spanish, Dutch, Belgian – traded, employed, paid taxes, demanded office space and contributed enormously to the economy of London.
Their employees kept restaurants, bars and taxi companies in business. Their taxes also built council houses in Belfast, Glasgow and Brixton. No one ever dismissed the huge and impressive London economy with the words “ah yeah but, it’s only the multinationals”.
No one suggested the taxes paid in London were in some way unreal or illegitimate or that the English should construct economic indicators ex-London to give a better sense of the English economy. The international presence in London is taken as a given, as legitimate as the English sweet shop, retailer or farm.
We used to refer to the foreign companies in London as the Wimbledon model of economic development. This referred to the fact that Wimbledon is one of the premier global tennis tournaments, hosted in England, yet few English players ever feature. That doesn’t mean that the tournament is not real or about to leave because English players are not as good as foreign ones.
It’s not just the British who don’t suffer from AYB. The Belgians or Luxembourgers don’t make allowances for the fact that Brussels and Luxembourg are home to many multinationals and most of the EU institutions. They don’t calculate their economies net of these foreign bodies. They are there. They exist. Simple.
Maybe we should similarly look at the multinationals based in Ireland. They are here, they exist and they are not going anywhere soon.
When I get the Dart into Dublin and the carriage fills up at Grand Canal Dock, this is real. It is not a sleight of hand or a bit of tax trickery. These are real people, real employees, real managers, real “intrepreneurs”, and their existence is not ephemeral or in some way to be discounted when compared to the allegedly more solid and genuine Irish Rail worker who drives the Dart.
In an internationally open world, foreign direct investment is completely normal and these investment decisions are not taken lightly. Doubtless, multinational companies will be affected by the market. Creative destruction waits for no man, no company or no product – that is capitalism. The companies will be judged by how they compete in the market and as long as they do that, and we look after them, they will stay here. (If the world closes, the entire tax base shrinks, not just corportation tax).
Multinational companies live or die by the market, but if they compete effectively in it, and we look after them, they will stay here. There is no “ah yeah but”.
Ireland collected €8.2 billion in corporation tax in 2017 (2.7 per cent of GDP and 11.6 per cent of total tax receipts). This was an increase of 11.5 per cent on 2016. The 10 largest corporation-tax contributors accounted for 39 per cent of total receipts. And here is the big figure: foreign-owned multinationals accounted for 80 per cent of corporation-tax receipts in 2017.
This should be welcomed, not shamed or in some way discredited.
Revenue.ie calculates that a quarter of all employees – or about 530,000 – were in multinational companies or serviced multinational companies.
The multinationals are part of us and we are part of them. They are not about to up sticks. It’s time to get over our attachment issues.
Are the multiple typos in this article intentional?
I don’t think people are particularly worried about the jobs going, but are we certain that the corporation tax they pay can’t be captured by some other tax haven? Or that the smart lads in the IFSC can’t find them a loophole?
Finance has always been there and always will, so London is onto a good thing, but Corporations based of sharing photos with your friends doesn’t inspire much confidence in their future.
AYB
-> https://www.thetimes.co.uk/article/france-pushes-for-corporate-tax-rule-wtn93hdbg
=> https://www.tax-news.com/news/Germany_France_Issue_New_EU_Common_Corporate_Tax_Proposals____86849.html
Dell manufacturing upped sticks out of Limerick almost a decade ago leaving the city as an employment blackspot ever since. That sort of thing could never happen again now could it?
We might be better off as a society if we kicked the multinationals and their tax receits out of Ireland. What they take out of Ireland in blood, stress, sweat and moral in their corporate antisocial ways of controling people both in their work places and outside of work may not be worth what the tax take in terms of the longterm (mental and physical) negative effects and costs on society which the multinationals often cause then proffit from, (for example the drug and sickness industries) selling treatments to treat (but not cure) lifestyle diseases caused by unnescary but forced… Read more »
I suppose it was last weeks “documentary” on the state propaganda organ which turned out be a whitewash for a prominent tax non domicile that signalled to me that tax “minimization” is actually now a marker of social esteem. For not only can one bribe a politician and get awaywa with it (thanks, FG)….but one can also get an image makeoer. Even if one is a competitor of the organ producing the makeover. And that is paid for by people co-erced into paying a tax that has no consent, of those involved. Now that David is outside that mostrosity, he… Read more »
British Broadcasting CORPORATION are very successful with broadcasts of their MI5 & MI6 & Tavistock directed PROPAGANDA attuned for Irish ears ;
Irish State’s RTE, & so-called independent TV3, & the so-called independent radio stations are likewise very successful with broadcasts of their Irish Freemasons [ Fianna Fail-repeatedly, Fine GaY-cum-L[Word], Labour & Frankfurt School [ Workers Party –> Democratic Left & Labour & Fine GaY-cum-L[Word] & Militant Socialist & Auntie Dorothy’s Dalliance, & what-have-u ? ] & EU directed PROPAGANDA attuned for Irish ears ;
AND, FEAR THAT THEY ARE NOT ABOUT TO UP STICKS
https://twitter.com/OnlineMagazin/status/1016644921502072832
We so small ; They so big
We so few ; They so numerous
We so servile ; They so aggressive
We so homeless + roofless ; They so feathered … for now ;
But, I envisage the setting up of hostile ghettos deliberately by the Banksters
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
What happens when the multi-nations flocking here are about to tear down the sticks of :
Irish establishment gated Living Estates ?
trans-national gated Industrial Estates ?
Irish establishment gated Civic Fortresses ?
Please do be very concerned that the Lawyer Industrial Complex is determined stick-it-up ur arse always ; I note that Abortionista & ahem-ahem-cough-cough so-called socialist 8-) Ms. Ivana Bacik, an apparent friend of David’s, is part of the legal profession’s special attack force against Drain-the-Legal Mafia Swamp* Mr. Shane Ross, TD [ non-party ], Minister for Transport >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Ref. https://www.independent.ie/irish-news/politics/absolute-nonsense-ross-rejects-claims-judicial-reform-is-due-to-personal-agenda-37089829.html EXCERPT ; Mr Ross’s controversial Judicial Appointments Bill is expected to finally pass through the Seanad next week. He said TDs and senators with legal backgrounds were “fighting a rearguard action because it disturbs their cosy way of life”. “The… Read more »
https://www.youtube.com/watch?v=QzMA9oURY-M
Just a quick reminder – I wrote before the World Cup that Croatia will be the dark horse:
“Croatia at 33/1 (second strongest midfield in the world to France)”.
I’m a better expert than Eamon Dunphy (whom I like), and I have more hair ;-).
Will feel more comfortable if the multinationals stay after the corporation tax rate rises to 20%.
OFF-TOPIC ;
BUT, WORTH NOTING HENRY MAKOW’s SENTIMENTS ABOUT “PERFIDIOUS ALBION” IN AFTERMATH OF THEIR DEFEAT IN SEMI-FINALS OF WORLD CUP ;
Henry Makow
@HenryMakow
TWEET ;
Shed a tear for the seedy little island in the North Sea
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
-https://www.telegraph.co.uk/world-cup/2018/07/11/england-vs-croatia-world-cup-2018-live-score-latest-updates/?li_source=LI&li_medium=li-recommendation-widget …
England out of World Cup: live reaction as Croatia come from behind to end nation’s dream
The glorious, beer-soaked Russian summer that changed English football and the England team forever is at an end, and the old story of 1966 will remain, for four more years at least, the greatest…
telegraph.co.uk
DO INDEED WORRY THAT THE SILICON VALLEY MULTI-NATIONALS ARE GOING ON A TRIP
Does not auger well for the design of ur hi-tech hardware & software emanating from Silicon Valley
Thus, does not auger well for longevity of USA computer manufacturers in Irish State
HEADING ;
‘The depression was just gone’:
People are microdosing LSD to try to improve their lives
Microdosing acid is becoming increasingly popular in the US.
Apr 23rd 2017,
EXCERPT ;
Microdosing has gained traction outside drug-enthusiast circles in recent years, particularly among young professionals in California’s Silicon Valley looking to dial-up their careers.
http://www.thejournal.ie/microdosing-acid-3348063-Apr2017/#comments
WOMAN KEEN TO UP STICKS SO AS TO BE AT EXAM DON’T WORRY SHE WILL ONLY GET 2 YEARS PROBATION IF SHE MURDERS HER INFANT BABY SO AS TO BE AT THE EXAM GOOD JOB HER COLLEGE WAS NOT “AUL TRINNERS” I SUPPOSE THOUGH ; A TOUCH EMBARRASSING IN THAT ANTI-CATHOLIC PLACE ? BUT, MAYBE ONLY WATER OFF A DUCK’S BACK. David, our Guru, says we must trust women in their decisions ; Because, they are infallible HEADING ; After-birth abortion’ ? Judge lets woman walk after drowning her newborn TAGS : abortion, campaign life coalition, infanticide KAMLOOPS, B.C., December… Read more »
Good luck with trying to publish that kind of article appearing in an Irish newspaper, let alone in “The Irish Times” (pun intended): https://www.wsj.com/articles/if-america-is-divided-so-is-europe-1530914306 And can you imagine Mrs Marian Finucane summarising it on her radio press preview? To say that our radio red star would be out of her depth is to say nothing (though more precise is to say that the article would be both too deep and too clear for the likes of her lazy journalism, impossible to distinguish from an unedited pub talk). Did you know that Marian Finucane (radio) and David McWilliams (TV) were the… Read more »
Kipling is not a poet greatly admired by many but he cut straight to the chase sometimes: and his poem The Gods of the Copybook Headings is onesuch – copybook headings are maxims of age old wisdom – virtues such as honesty and fair dealing that were printed at the top of the pages of 19th-century student notebooks. And his warning is terrifying. AS I PASS through my incarnations in every age and race, I make my proper prostrations to the Gods of the Market Place. Peering through reverent fingers I watch them flourish and fall, And the Gods of… Read more »
Despite his general comment about England which he alludes as being “the seedy island [ Britain in fact ] the North Sea” ], Henry Makow is not without love for the decent people of England ;
e.g.
Here he is hosting a rather shocking article warning of what the UK Intelligence Agents are doing to start a racial & religion civil war there ;
https://www.henrymakow.com/2018/07/UK%20Intel%20Agencies%20Preparing.html
My immediately previous post is a prematurely published post ; Here is the proper version ; >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> It is not only the Nigerians & the Indian Sub-continentals who are upping sticks to be Social Welfare Claimants on Irish State, so are a great many Caucasian English ; Another motivating factor for them is that they feel that their country, England 8-), has become over-run with what they are given to term “Coloureds”.. And, especially Muslim Coloureds, & Hindu Coloureds, & Sikh Coloureds. The English man is fast developing a new-found appreciation for that nation with the whitest of all skin… Read more »
If your headline is correct then Jean Claude and Donald Tusk will be disappointed.
DON’T WORRY, THE BRITS ARE NOT ABOUT TO UP STICKS FROM IRELAND They never did from the South of Ireland ; Ahead of so-called leaving they made sure that the whole system of governance in Irish State was agreeable to their needs, vis., Freemason local control of Irish so-called “Free” State Ditto so-called “Republic” of Ireland [ Irish State ]. Irish State was never ruled by the Catholic Church. Yeah, sure, the Catholic Church had a civilizing effect on the lower working classes, & a proportion of the middle class for dwindling duration until finally they have none ; Because… Read more »
https://twitter.com/HenryMakow/status/1018007238215131137/photo/1
This is what the City of London Freemasons, & the North East of Ireland Freemasons, & the Irish State Freemasons wanted to do to :
West Belfast
South Armagh
Dundalk
https://twitter.com/hashtag/GazaUnderAttack?src=hash
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
And, this is a useful website with graphics explaining Gaza, & giving news on Middle East ;
By the way, China is splashing around very big investments & loans in Middle East now.
http://www.middleeasteye.net/news/gaza-crisis-explained-graphics-palestine-israel-west-bank-nakba-operation-115419871
”And what did they find? They repeated again today, as they have 100 times before that no votes were changed. You want to know if there was collusion? There is, it’s collusion from this shadow government to undermine Donald Trump. This is so dirty that it’s beyond comprehension that it can happen in a nation that is supposed to be governed by the rule of law and have checks and balances. How can the media be silent on this? For the same reason they have been piling on him for the last year and half. They’re trying to force him… Read more »
Fucking outrageous refereeing in Russia in favour of France (bogus free kick followed by bogus penalty). Fucking corruption. Fucking muppet of a referee.
@Truthist Only have a few minutes but I miss the Ireland of Brian O’Nolan, Hugh Leonard and Amanda McKittrick Ros. We have no poets anymore only people that like the idea of being a poet. So in the vacuum I submit the bad poem that got me barred for life from Slugger O’Toole. To Hell or to Connaught To Connaught or Hell To sleep with the fishes Of Scotland full well To ask us to finish the job Of Cromwell Do not ask do not ask For whom tolls the bell The Wildeness of Merrion Call in Dr Fell Perhaps… Read more »
No Englishman can understand what it to be Irish but the English are a bit like this: It was Christmas Day in the workhouse The snow white walls were black Along came the Workhouse Master With his suit cut out of a sack. In came the Christmas pudding When a voice that shattered glass Said: “We don’t want your Christmas pudding You can stick it with the rest of the unwanted presents” The workhouse master then arose And prepared to carve the duck He said: “Who wants the parson’s nose?” And the prisoners shouted: “You have it yourself sir.” The… Read more »
Please yor honour yr man had drink taken:
Oh! To be a Jackeen
Oh! To be a Shoneen
A Western Brit is somewhat shit
And a being a Tout I can do without
A Grass I think I’ll let that pass
I’ll settle for being a Cockney Git.
FATHER, Mother, and Me Sister and Auntie say All the people like us are We, And every one else is They. And They live over the sea, While We live over the way, But – would you believe it? – They look upon We As only a sort of They! We eat pork and beef With cow-horn-handled knives. They who gobble Their rice off a leaf, Are horrified out of Their lives; And They who live up a tree, And feast on grubs and clay, (Isn’t it scandalous?) look upon We As a simply disgusting They! We shoot birds with… Read more »
’AVE you ’eard o’ the Widow at Windsor With a hairy gold crown on ’er ’ead? She ’as ships on the foam—she ’as millions at ’ome, An’ she pays us poor beggars in red. (Ow, poor beggars in red!) There’s ’er nick on the cavalry ’orses, There’s ’er mark on the medical stores— An’ ’er troopers you’ll find with a fair wind be’ind That takes us to various wars. (Poor beggars!—barbarious wars!) Then ’ere’s to the Widow at Windsor, An’ ’ere’s to the stores an’ the guns, The men an’ the ’orses what makes up the forces O’ Missis Victorier’s… Read more »
Ref.
Bitcoin, & …. expectedly more
This not from the pen of Miles Mathis himself ;
Rather, it is only hosted by him.
I just zoomed down through it for to view for graphics.
I must attend to some stuff soon that will mean I not able to attend to this blog for many hours ;
So, I am posting this off-topic link ahead of actually reading it for gist even.
It may prove to be 1 of those tasty end of discussion posts.
http://mileswmathis.com/bitfraud.pdf