Corporate tax and the Celtic tiger

Un chara, – David McWilliams argues (“Ireland a tax haven? I don’t think”, Opinion, Weekend Review, July 10) that Ireland’s low corporate tax rate has played a key role in boosting the influx of foreign investment which has supported Ireland. high economic growth rate over the past 30 years.

There was no change in the rate of tax payable by foreign companies operating in Ireland between 1980 (when a rate of 10 per cent was introduced) and 2003 (when the rate was raised to 12, 5 percent).

The surge in foreign investment began in the early 1990s, roughly halfway between those dates. It is therefore difficult to see what role the tax rate (which remained unchanged) played in triggering this surge.

What has changed is the quality of jobs created by foreign companies during the so-called “Celtic Tiger” period, which was far superior to the low-skilled assembly and packaging jobs that were a dominant feature of investment. previous foreigners.

It is therefore much more likely that the growing availability of skilled workers has been the main driver of the rapid growth of foreign investment in Ireland over the past few decades. The increase in the tax rate in 2003 had no perceptible impact on this growth. – Is set,

PROINNSIAS BREATH,

Maynooth,

Co Kildare.