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Thread: We can keep our corpo tax as low as we want...and then some. Here's why.

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    Default We can keep our corpo tax as low as we want...and then some. Here's why.

    I note the latest bully-boy tactics by the Germans, practically demanding that we raise our corporation tax. They should of course realise by now that they are in no position to demand anything.

    At the moment the German economy is benefiting tremendously from the whole Eurozone shenanigan, and will also in the future. The ECB is currently buying our bonds when no-one else will, to avoid us defaulting and pulling out of the Eurozone.

    Now why would smart people like that buy our crappy, crappy debt? Well, if we pull out of the Eurozone, the whole house of cards comes crashing down. The euro would fail overnight.

    So we are in a pretty good bargaining place, from where I'm sitting. There is more than enough in the EFSF to completely bail out Anglo, and still leave plenty. And it cannot be denied that bailing out Anglo, and hence Ireland, would stabilise the Eurozone, and stop the euro falling against the other currencies and once and for all quell the markets anxieties re: Anglo and its effect on the Eurozone.

    So why in hell aren't we saying to Germany, and the ECB: "Hey, um, achtung there, we can't bail out Anglo. You do it with the EFSF, or we in Ireland will have funny looking green money with leprechauns on it by sundown. Enjoy the resulting economic fallout, we'll be too busy devaluing to care."

    We are in a position of huge power. Surely they realise this?
    Last edited by jane5; 3rd October 2010 at 02:39 PM.

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    Politics.ie Member Old Mr Grouser's Avatar
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    Quote Originally Posted by jane5 View Post
    We are in a position of huge power. Surely they realise this?
    And do you also believe in Father Christmas?

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    Then explain to me why this isn't so.

    If we leave the eurozone, it will seriously destabilise, and in all probability, will collapse.

    Leaving it, for us, is probably one of our best options right now.

    So we have basically nothing to lose. The Germans, on the other hand, do.

    What part of this is incorrect? Enlighten me.

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    Quote Originally Posted by jane5 View Post
    I note the latest bully-boy tactics by the Germans, practically demanding that we lower our corporation tax.
    They want us to lower them?

    We must be in more trouble than I thought if they want us to lower them.

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    Politics.ie Member Old Mr Grouser's Avatar
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    Quote Originally Posted by jane5 View Post
    Then explain to me why this isn't so.

    If we leave the eurozone, it will seriously destabilise, and in all probability, will collapse.

    Leaving it, for us, is probably one of our best options right now.

    So we have basically nothing to lose. The Germans, on the other hand, do.

    What part of this is incorrect? Enlighten me.
    Your talking about two separate things.

    1. Corporation Tax. International companies only benefit from Ireland's low rate of Corporation Tax because other countries accept it. Those other countries have only to 'tweak' their own tax laws, so that there are surcharges and restrictions on a Corporation's 'Irish' profits, and Ireland's attractions vanish.

    2. " if we pull out of the Eurozone, the whole house of cards comes crashing down. The euro would fail overnight. " The Eurzone is unstable anyway. If Ireland declares itself insolvent and leaves then it's no worse, perhaps better, for the other countries than if Ireland, insolvent, stays in the Eurozone and drags the others down.

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    Politics.ie Member seabhcan's Avatar
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    Ireland cannot pull out of the eurozone regardless of how bad things get. It can't be done.

    We owe our debts in euro. They must be repaid in euro. We cannot 'pull out' of that.

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    Quote Originally Posted by Passer-by View Post
    They want us to lower them?

    We must be in more trouble than I thought if they want us to lower them.
    Typo. Apologies. Have fixed that.

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    Quote Originally Posted by seabhcan View Post
    Ireland cannot pull out of the eurozone regardless of how bad things get. It can't be done.

    We owe our debts in euro. They must be repaid in euro. We cannot 'pull out' of that.
    Umm, defaulting kinda means you're not paying it back. So those debts could be in gold doubloons, euros or whatever. It ain't getting paid back.

    It won't be anyway. There is no physical way to service the debt that the private banks have run up, even by forcing the public to pay against their wishes, which also will not work, no matter what they think. Everyone I know who HAS a job is leaving the country, in addition to the ones who don't. Tonnes of people are leaving. Even some pensioners I know are choosing to live out their days (and hence spend their pensions) in a different country with more going for it.

    No matter what, we have to start thinking of credible alternatives. Forcing the public into penury will not put a dent in these debts, and will cause massive civil unrest, the likes of which have probably not been seen in most of our lifetimes. Most people in addition, will not stay to have this done to them.

  9. #9

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    Quote Originally Posted by jane5 View Post
    Then explain to me why this isn't so.

    If we leave the eurozone, it will seriously destabilise, and in all probability, will collapse.

    Leaving it, for us, is probably one of our best options right now.

    So we have basically nothing to lose. The Germans, on the other hand, do.

    What part of this is incorrect? Enlighten me.
    +1

    Nothing at all, apart from non conformist thinking and rattling a few cages of the Eurotrons while they read the Sunday editions of their beloved Eurotron papers such as the Guardian.

    They will no doubt track you down and pack you in to a back of a military police truck and send you to a "correctional facility" deep underground of the Ministry of Truth. There inside Room 101, you will be tortured to accept the Euro by being confronted with your greatest fear, a naked Brian Cowen, Mary Harney and Michael Noonan lecturing you about the benefits of EU integration for 48 hours constant.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

  10. #10

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    Quote Originally Posted by Old Mr Grouser View Post
    Your talking about two separate things.

    1. Corporation Tax. International companies only benefit from Ireland's low rate of Corporation Tax because other countries accept it. Those other countries have only to 'tweak' their own tax laws, so that there are surcharges and restrictions on a Corporation's 'Irish' profits, and Ireland's attractions vanish.

    2. " if we pull out of the Eurozone, the whole house of cards comes crashing down. The euro would fail overnight. " The Eurzone is unstable anyway. If Ireland declares itself insolvent and leaves then it's no worse, perhaps better, for the other countries than if Ireland, insolvent, stays in the Eurozone and drags the others down.
    If we pull out of the Eurozone and default on our debt, it would make the collapse of Lehman Bros look like your local chippie shutting its doors.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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