Interesting piece in the Irish Times business section today on George Quigley’s campaign to set a separate corporation tax rate. However, she thinks Northern Ireland’s long game of Peace Processing, may have worn compassion levels very thin (subs needed) where it counts. Still:
The campaign to cut corporation tax has been well marketed locally. The Industrial Task Force’s report, published this week, said that such a cut would mean 180,000 new jobs and £17.5 billion (€30 billion) in revenues – by the year 2030, that is.
Headline figures like these are attractive to politicians wading through the nitty-gritty of the package on offer from Mr Brown – a mixed bag made up mostly of commitments to public spending to 2011 and extending capital investment spending to 2017.
The low tax rate also been proven to work in the Republic. If the campaigners concede that cheap tax was not the only factor behind the economic boom south of the Border, there is still a widespread belief that it was one of the most important.
Besides, the alternative, according to Sir George, is stagnation. “If it [ a tax cut] doesn’t happen, we will simply go on, stuck at 20 per cent below the UK average, heavily dependent on the public purse with everybody telling us we’re not sustainable but not prepared to make us sustainable,” he says.