Congress says Innovation Tax Call A 'Race to the Bottom'
11 Mar 2010
Congress today (March 11) said calls by the Innovation Taskforce for lower corporation tax for 'innovative activities' was yet another case of business advocating a race to the bottom.
Congress Economic Advisor, Paul Sweeney said: "Irish companies already enjoy one of the lowest Corporation Tax rates in the developed world and the lowest social contributions. They enjoyed a vast array of 'tax breaks' during the boom. Arguably, the level of corporate welfare in Ireland is already so high that it stifles enterprise," Mr Sweeney said.
"While there is a case for using the tax system to spur growth and innovation, it seems as though lowering already low tax rates is always the first item on the agenda of any group associated with business. You can only go so low. How long before someone advances a case for zero rates of tax?"
Mr Sweeney was also critical of the "very loose concept of 'innovative activities': what does that mean and who defines it? Is it a moveable feast and will it depend on political whim? After all, the last decade saw a huge rise in 'innovative activities' within the banking and finance sector...and look where that got us," Mr Sweeney concluded.
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