The Labour Party is calling on the Minister for Finance to sign Ireland up in full to the OECD’s plans to reform the way countries tax the profits of big, successful multinational corporations.
We made this big call for three reasons.
- As we work to build back fairer, those who have the most should be asked to make a greater contribution to the national and global recovery.
- Refusing to commit to a global deal on a new minimum effective rate of corporation tax has caused reputational damage to Ireland and has cost us allies.
- We firmly believe in the principles of global solidarity and tax justice and fairness.
Our colleague Ruairi Quinn was responsible for the introduction of the 12.5% rate of corporation tax announced almost 25 years ago. It served us well at an important point in time in our economic and industrial development.
Things change and when they do, our policies need to adapt with the times. Ireland has been dubbed a ‘climate laggard’. We now fall into the category of tax laggards too.
Thanks in no small part to the hard work, skills and productivity of our workers Ireland is now by any standard a wealthy, developed and sophisticated economy and country.
As the global corporation tax system is reformed we can, if the right decisions are made by government in the coming years on investment in education, skills, innovation, housing, public childcare, climate action and infrastructure continue to retain and win significant foreign direct investment.
In short, we need a new national industrial strategy that’s fit for purpose, infused with vision and real ambition for Irish workers, entrepreneurs and researchers.
The days of the relentless race to the bottom on business taxes are nearing an end, whether Fine Gael and Fianna Fail like it or not.
The writing is on the wall. The government should take our advice and do the right thing by Ireland and the rest of the world.