Sir, – Your Business Editor, John McManus (Business Opinion, October 21st) is to be commended for highlighting the disconnect between large companies paying little or no tax on their vast profits and the tens of thousands of individuals struggling to feed their families and keep a roof over their heads.
As in his previous week’s column (“Philanthropy cannot be a substitute for paying tax”), McManus has his finger on the pulse of how large corporates and tax exiles are being viewed by an increasingly desperate and indebted electorate.
While our mainstream politicians are hell-bent on maintaining the low corporate tax rate regime (ie the maximum rate that can be paid), little attention is being given to what the minimum rate payable should be. Zero tax on profits is clearly not socially or indeed corporately acceptable. All individuals are now liable to pay the Universal Social Charge (USC) on gross incomes exceeding €10,036 per annum. Why not have a similar universal charge, let’s call it Universal Corporate Tax (UCT) for corporates? This would be paid on net income (profits) and would ensure that all profit generated by companies is subject to a minimum, ethically justified rate of tax. Leaving it to boards of directors to decide what the rate should be an insult to democracy.
The Minister of State at the Department of Finance, Brian Hayes has said Ireland has nothing to fear from a European Commission inquiry on corporate taxation. Perhaps he and his Coalition partners should be fearful instead of a disgruntled electorate who see their politicians continuing to grease the wheels of big business, some with no nationality, and tax exiles, while tax-paying citizens of this State struggle to put cornflakes on the table. – Yours, etc,
TOM McELLIGOTT,
Tournageehy,
Listowel,
Co Kerry.