In a recent entry Banking Crisis: Help Us or We Default, I suggested that Ireland could introduce a temporary levy on top of its current 12.5% rate for Corporation Profits Tax (CPT) as a quid pro quo for EU/IMF/ECB agreement on restructuring some of its bank bonds and slashing the interest rate applicable to the bailout.
It is apparent that there is substantial resentment within the EU, most notably in Germany and France, about Ireland's low CPT rate. My idea is that an increased rate would help Angela Merkel and Nicolas Sarkozy, Chancellor of Germany and President of France respectively, to "sell" such a deal to their sceptical electorates.
This entry discusses the Irish CPT issue under the following headings:
- Importance of Corporation Profts Tax Rate
- Consequences of Increasing the Rate
- Threat = Opportunity
- Stop Kicking the Can