The latest Apple tax revelations mean that Ireland is now on a collision course with the EU Commission and by extension with the EU itself. In a narrow sense — and this might be the only sense that matters — this is a win/win situation for Ireland.
However, the issues raised are much bigger than the Apple case and centre on how you think the Irish economy might become more prosperous in the years ahead. If the latest spat with the EU (frankly, a directionless 20th century arrangement) forces us to think about what Ireland will look like in a global 21st century economy, then it will have been well worth it.
In terms of this case, let’s examine the likely options. They are, in effect, binary — either Ireland wins the appeal or not.
If we lose the appeal, we get €13bn (possibly as much as €20bn according to some calculations). This is good for the Exchequer and as long as it is not spent on public sector salaries, this could be a capital windfall for the State, used to improve a variety of public investments where we are lacking.
In terms of the biggest providers of private investments in the country, the US multinationals, we can argue that we have fought the good fight on their behalf and therefore we should be regarded in the future as friends of American capital. Maybe it is naïve to regard these companies as in any way swayed by loyalty, but this angle is worth considering because we have already taken sides. The bread is buttered, so to speak.
If we win the case, we are back to where we were before the commission dropped their bombshell. Ireland will continue to be the location of choice for American capital. This is significant because without the multinationals we would not have a capital base.
In fact, winning the appeal will probably lead to a tightening of our tax treatment of foreign capital. If it does, then this too would be a gain for Ireland because American capital operating here would have to pay the 12.5pc they are supposed to, policed by a bruised, vigilant but locally impotent EU.
The latest figures we have show that US multinationals made $100bn, or €96bn, here. However, they only paid $4bn in tax rather than the $12bn they should pay based on a 12pc tax rate. The long-term benefit to Ireland would be the missing €8bn that would be paid.
Thus it appears that, win or lose, Ireland will benefit from the case.
But there is something else, arguably much more significant, that could be triggered by this case. It concerns Ireland’s competitive strategy over the next 50 years.
It seems to me that there’s lots of talk about the “Irish economy”, giving the impression that the Irish economy is an entity like say the German economy, where domestic policies determine levels of investment, income and thus employment.
This is not true. The Irish economy is not an economy in the true sense of the word. We are simply a small part of a global supply chain. This is a good thing. The path to prosperity is to abandon this notion of the autonomous Irish economy and embrace the idea that Ireland’s investment, and thus income, savings and employment levels, will come from being Europe’s most competitive cog in the global supply chain. This is where our new capital will come from and this is where productivity will come from.
Once we have the investment and income, we can choose where to spend it locally.
Let others distract themselves with the delusions of national autonomy; we should focus on the opportunities of the global supply chain. This means keeping Irish corporation tax rates low, being reasonably open to immigrants and staying broadly within the EU.
When I say broadly, I mean this is as far as it goes for integration. From now on, we should opt out of all the plans devised by the serial integrationists in Brussels.
This means no tax harmonisation. In fact, we should cut our corporation tax if necessary. But it also means that we have full access to the EU market, unfettered.
While many in Ireland will argue that we should do a Brexit, I suggest that we should do precisely the opposite. Rather than leave the EU, we should insist on never leaving. We must realise that we cannot be pushed out! We can stay on our own terms. Therefore, we could become the most American economy within the EU, with all the attendant advantages this bestows in terms of investment, incomes, technology and employment. Even if Brussels doesn’t like it, there is no mechanism for the EU to kick us out no matter how delinquent they think we are.
Having tried to attack our economic model using the Trojan Horse of state aids, we should attack their integrationist aspirations through the Trojan Horse of full compliance — full compliance with everything up to now.
This would allow us to remain good Europeans — whatever that means — while still trading merrily with our American friends.
After being subjected to the worst form of bureaucratic bullying by the EU, we should simply dust ourselves down and carry on. This will mean using the veto. So be it. Use it as many times as necessary because the EU can’t touch our tax independence, nor can it ban goods made by corporations incorporated in Ireland from free access to its 500 million consumers.
The EU, under European Commissioner for Competition Margrethe Vestager, has revealed too much. In a game of chess, the commission is playing monopoly and we now have to remain calm and move our bishops, diagonally, into position.
In the past, I considered Ireland’s alliance with China – but this was a result of then UK’s alliance with China, and Ireland needing the UK in the EU to counterbalance the influence of the German-Franco bureaucratic culture. Now, with the UK 1. out (sort of), 2. a post-Brexit competitor to Ireland bigger than pre-Brexit and 3. the UK making a U-turn on their alliance with China (it was thanks to the UK playing a role of a Chinese Trojan Horse in the EU and blocking trade defense instruments in the EU for 3 years that the EU tariffs on… Read more »
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Playing GOD Will the Church allow a condom in Sex ? In other words will the suggestion to prevent further integration with the EU render the actions of Ireland to be brought before the EU Commission again under ‘other articles of faith’ or the aspirations and or myths of the EU . The options suggested by David are (summarily) : 1 We lose, we win; and 2 We win, we lose and maybe we win too; and 3 Change the illusions of ourselves with others (Penn & Tell Strategy) and pretend we are divine in an untouchable host ( 51st… Read more »
I actually think we should plan on leaving the EU. And for rather obvious reason. It is a policy making monopoly, that is intending to give itself the right overrule us. In fact, insisting on being always obedient to the nEU we are effectively operating with one hand behind the back. Despite all the big talk, the EU empire is not really in a position to lecture anybody about internal governance anymore. But arrogance empowers the Politburo, to feel that they can do it anyway. Incidentally, Greece is not solved. Sweden is next to meet a real estate/banking system meltdown.… Read more »
Hi David, I wonder whether it is time to re-visit the concept of a “European Community” model as opposed to the European Union? Could a looser, less integrated alliance better suit Ireland and other countries on Europe’s periphery? Let the core (led by Germany) continue to integrate if that is what they want to do. But permit, the Community countries participate in the Single Market, not be part of Schengen and make the Euro optional? This might be a bridge too far for Brussels bureaucrats to consider, but let’s face most of Ireland’s economic difficulties in the last decade or… Read more »
Where Does The Apple Fall
Gravity dictates direction . We Don’t. History Repeats Itself . We Never Learn that.
The Kingdom of Kerry of Great Britain and Ireland will Return next year just as it was before …..residing at Windsor .
Ref. David’s article above . “This is good for the Exchequer and as long as it is not spent on public sector salaries, this could be a capital windfall for the State, used to improve a variety of public investments where we are lacking.” . . Government at a Glance 2011 © OECD 2011 Chapter 7 Human Resources Management Practices Version 1 Last updated: 24-Jun-2011 Average hours worked per year (adjusted) Chile 2048 Israel 1953 Switzerland 1913 Mexico 1862 United States 1840 New Zealand 1838 Germany 1814 Korea 1814 Poland 1814 Slovak Republic 1806 Slovenia 1802 Turkey 1798 Austria 1786… Read more »
Sorry, that post did not give sweet presentaion of the figures. . I hope that this effort puts the figures in sequence of longest hours worked to shortest hours worked ; Irish State Civil Servants work [ incl. “skull-dugger”, “stone-wall”, “betray”, etc. ] the 2nd least number of hours. I guess that they will use that defense to try to mitigate consequences for when the public — their “real” boss — eventually revolts to take them to task for the SERPING that so many of them — Civil SERPENTS — do. . Chile 2048 Israel 1953 Switzerland 1913 Mexico 1862… Read more »
David’s article says, or at least implies, that long-term we are in a fix. We are less autonomous than the likes of Germany and are merely a cog in a global economy. I find a lot of problems with that. The global economy might well not be able to continue as it is indefinitely in particular with regard to the dangerous (if not unbelievable) extent it relies on credit and what appears to be internationally organized accounting fraud. Peak oil might well be behind this and if not is merely another problem. As for the EU, I am reading Booker… Read more »
Here is a best-but-rough effort from me — Truthist — to replicate tabulated info Re ; Salaries etc of “Middle Managemnet” Civil Servants from sample of countries. . . Ref. Chapter 6 Compensation in selected public sector occupations Compensation of middle management in central government Version 1 – Last updated: 24-Jun-2011 . . 28.1 Average annual compensation of middle managers in central government (2009) Adjusted for differences in working hours and holidays List of countries ; . Australia Austria Belgium Chile Denmark Estonia Finland Hungary Israel Italy Korea Mew Zealamd Norway Switzerland Spain Sweden UK USA OECD* ; Obviously not… Read more »
I was told that the difference between the Irish State Public Service & the Irish State Civil Service is that the Irish State Public SERPENTS restrict the public from accessing the Irish State Civil SERPENTS. . Big “worry” for the Public Serpice & the Civil Serpice is that there exists moles within the Public Service & Civil Service i.e. Public SERVANTS ; as against Civil SERPENTS Civil SERVANTS ; as against Civil SERPENTS . BEST TO CONTINUINGLY TERM THE WHOLE OUTFIT AS “THE CIVIL SERVICE”. . . And, I tell u this ; . The whole hospital crisis with patients… Read more »
Fair play to the Englishman with a great, great heart! This is so great sign of kindness from Mr David Duncan that is has moved me to tears. http://www.dailymail.co.uk/news/article-4059062/British-trucker-raises-50-000-family-Polish-driver-killed-Berlin-attack.html There is one detail about the heroic Pole who saved the lives of dozens of people in Berlin by fighting with the Jihadists and not allowing the truck to go for as long as in Nice (which could have easily resulted in 100 dead): he died because Germans use discriminatory practices against Polish transport companies: the established practice in Germany is to postpone the unloading of transport companies from Poland while… Read more »
German Ambassador is correct Grzegorz. . . He did not say that the Irish ARE — ALWAYS ARE / INESCAPABLY ARE / ARE INHERENTLY — a coarse & vulgar people. . . Rather, he said ; . “The Irish people HAVE BECOME a coarse & vulgar people.” . . And, I concur. . . He compared us to the Irish of yesteryear that he knew. That milieu of Irish he held in high regard. . And, even so, I would say that we would have dirty traits as a nation then. . He blamed most of the decline in the… Read more »
Perhaps the Berlin Market Truck-Attack on Civilians incident is false flag ?
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Also, there are accusations that the killing of the Russia Ambassador to Turkey is not true ;
But, that seems impossible to me.
http://aanirfan.blogspot.com/2016/12/berlin-market-attack-false-flag-inside.html#comment-form
Robot Verification
I am not sure if David reads the site anymore as his long absence to engage especially over Christmas only allows the experience here to become bland and robotic without zest.
Where is my pulse !
Enlightenment.
Merry Christmas to you all and especially to our host who makes it all possible.
I look to the New Year for further enlightenment.
I also look forward to Trumpquake and maybe some discussion/predictions on what that’s going to be like.
But for now peace and good will to all.
OK all yee keyboard warriors ;
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“At ease !”
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Have a very Merry Christmas.
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And, also a Merry Christmas to our host David.
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And, also of course a Merry Christmas to to our readers only.
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And, to Big Brother monitoring us all on this blog, wake up so that ewe’s are no longer a sociopath.
Do it right now !
Wake up !
That is an order.
Then, enjoy Christmas.
8-)
Grzegorz I am happy to report to you that my sister farming in Devon is very happy with any of the Poles she has employed. There are a couple of men who have worked there w awhile in the dairy. another employed in doorstep delivery of dairy products and ad hoc arrivals of stone masons, bricklayers, mechanics etc for other assorted projects. If I quote correctly, ” they work until the job is completed without always looking at the clock, they start early and finish late, they know what they are doing and they don’t cost as much. I am… Read more »
https://www.rt.com/shows/keiser-report/371088-episode-max-keiser-1008/
Election manipulations? russian buying record amounds of gold, war on cash, fall of fiat currencies Paul Craig Roberts on failed dump trump coup.
Further to recent exchange of opinion on Elon Musk of Tesla Cars fame
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Miles Mathis says ;
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“I do not believe in Elon Musk”
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And, here is Mathis’s de-construction of Elon Musk
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http://mileswmathis.com/musk.pdf
http://www.thedailybell.com/news-analysis/facebook-is-fake-news/
http://www.gopusa.com/?p=18654?omhide=true
“”Considered unethical by the left, Eric Trump Foundation will no longer collect money for St. Jude Hospital””
Doing things the American Way.
http://khn.org/news/alleged-scheme-to-fix-generic-drug-prices-started-at-dinners-and-girls-nights-out/
voting out the establishment in the american way. Hello Beppo, Hello Harine, Hello Geerts.
http://usawatchdog.com/weekly-news-wrap-up-12-23-16-greg-hunter/
https://srsroccoreport.com/forensic-evidence-why-silver-price-manipulation-will-end/
When the ponzi scheme rest occurs currencies of all kinds will exhibit the inflation locked in to them because of the rapid recent expansions of the money supply by a factor of 2,3 4 or 5 times.
At the same time the store of value locked in to the precious metals will exhibit itself.
What would you rather hold to save your ass; Fiat cash assets or PM assets?
https://www.caseyresearch.com/articles/doug-casey-sell-all-your-bonds
Sell your bonds at the top of the market ie. now. Stocks and realestate will be next. You have to have a home and if mortgaged get the longest term available now.
Agricultural land is ok , does that mean ireland as a whole, and be rid of anything else not useful. gold and silver is wealth and the ultimate money.
Poles build BC ferries
http://www.timescolonist.com/news/local/new-ferry-salish-orca-reaches-pacific-through-panama-canal-1.4869770?http://www.timescolonist.com/news/local/new-ferry-salish-orca-reaches-pacific-through-panama-canal-1.4869770
http://www.timescolonist.com/news/local/new-ferry-being-built-in-poland-is-christened-salish-orca-1.2120910
I pinched my pulse at the railway station in Starbucks Limerick today reading ( on a Saturday morning ) the Sunday Business Post ……and there is no article in it from David . So I was left with no choice but to read other journalists contributions namely : Brian Keegan and Ian Kehoe. Both are relative to the above with different perceptions and strategies. It proves no two economists can agree .So what do we do and expect in new year 2017 ? Many journalist / and political contributors have made various interesting thoughts and there is no clear way… Read more »
Your problem John is your name. I mean John Allen – for God’s sake, that’ll cut no ice with anyone.. You needed to go for something memorable or symbolic or both if possible. Bog of Allen would have got you more clicks and that’s a pretty easy starter for ten. Pope John maybe. All depends on your general message. I’ll give you a good. There’s a guy on here, talks crap most of the time but like a broken clock he gets it right from time to time. His moniker “McCawber” a well known literary character with some well known… Read more »
As in Polish tradition Christmas Eve is actually a more important day than Christmas Day, with the most important family dinner of the year taking place that day (tradition shared with Lithuania, Bulgaria, western Ukraine, Italy and France – in France they eat Réveillon), I would like to say this:
NOLLAIG SHONA AGUS ATHBHLIAIN FAOI MHAISE DAOIBH!
With that, I’ll probably take a sabbatical.
http://culture.pl/en/article/the-12-dishes-of-polish-christmas
http://www.gata.org/node/17053
If gold is not money and not a store of value why do so many central bankers hang on to it?
Polish Christmas Eve “oplatek” tradition explained in two minutes:
https://www.youtube.com/watch?v=9hF81CuzeCw
A spicy-sense-of-humour Christmas commercial of the Polish delivery company Allegro (a grandda wants to visit her granddaugther who emigrated to England and he has to learn some English):
https://www.youtube.com/watch?v=7D3WJB5Yikw
Getting back to David’s Article. It occurred to me on a number of occasions that both the EU and Ireland have been using the mushroom strategy on each other. The EU blinked first, in that regard, by petulantly claiming that Ireland had produced too much documentation in relation to the Corp. Tax issue. The EU cannot dictate what evidence Ireland provides. And in doing this Ireland have (hopefully intentionally) signalled to the EU that we are not going to roll over. David only hints at it but the real strategy to followed here is to become the perfect EU member… Read more »
WHAT KIND OF FOOL DOES THAT? 2016 Dec 19 from Jerry Scott Four Gasses are critical to life systems on earth, Nitrogen, Oxygen, Hydrogen, and CO2. They have branded CO2 as a dirty pollutant. What kind of a FOOL does that? Methane and natural gas are ten times more greenhouse effective than CO2. The earth bleeds it from every pore in mega tons and most of it eventually oxidizes to water and CO2. The amazing thing is it cannot be stopped or regulated and therefor is not taxable. They have picked CO2 for the obvious reason that it can lead… Read more »
Eustace Mullins explaining the corruption of modern medicine ; . . Google.com results for search terms ; . . Murder by Injection AND Eustace Mullins . . https://www.google.com/?gws_rd=cr&ei=dIlgWLHGGcrjvASss6XAAw&fg=1#q=Murder+by+Injection+AND+Eustace+Mullins . . Free version of his book here as PDF . . http://www.bibliotecapleyades.net/archivos_pdf/murderinjection.pdf . . And, 1 of a number of interviews with Eustace Mullins on this subject as youtube video. Also, the internet-radio interviews with Eustace Mullins on the “Bankster Scam Bundle” & “Medical profession” & “Chemical corporations” & “Legal profession of the [In]justice system” are very useful. . . Important to note ; . Mullins did not investigate the modern… Read more »
Building a wall to prevent election interference.
Your article helped me a lot, is there any more related content? Thanks!
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article. https://accounts.binance.com/pt-BR/register?ref=S5H7X3LP