Madam, - EU Taxation Commissioner Lazlo Kovacs's plan for a common consolidated corporation tax base makes sense for the EU and for Ireland.
First, it prevents the ruinous race to the bottom whereby EU countries each try to undercut each other in order to attract business.
Secondly, Ireland should embrace the programme because low tax rates are no longer a competitive advantage for Ireland. We have lowered corporations taxes as far as possible, yet Eastern European countries, such as Latvia, Estonia and Poland, will still be able to undercut Ireland and attract more investment.
Thirdly, our low corporation tax costs us great political capital at the EU. Fourthly, we need to move away from low tax as being the principal attraction for investment in Ireland.
Instead, we need to focus on improving our infrastructure (airports, roads, broadband, wireless, etc), education system, workforce training and general business environment.
While we cannot compete with eastern Europe in terms of tax rate, we can still be a much more attractive place to invest in terms of the more positive policies outlined above.
Ireland has always known that the low corporate tax system as the principal attraction for investment could not last indefinitely. The Commission plan provides a good opportunity for Ireland to change its emphasis. - Yours, etc,
PETER MALONE, F Street, Washington DC.