The Financial Times reported a couple of weeks ago that Bottler is worried about losing companies to Ireland in search of lower corporation taxes, that they are thinking of taking action.
The action under consideration is to drive the EU towards tax harmonisation, to compel Ireland to have the same high rates that we have, and thus lose their competitive advantage.
What is wrong with tax competition, except that it puts pressure on high spending governments to fall into line and become more efficient.
This is the usual ploy from the inefficient and unsuccessful - to try to overcome their own failings by compulsion of others. "They are selling their ice creams at £1, while we try and fail to sell ours at £1.50. Let's get the council to insist on a uniform price of £1.50", justified by all sorts of specious arguments - quality maintenance, our special practices or difficulties, or simply supported by other inefficient producers ganging up with us.
They wonder why the EU is so inefficient and why Ireland in saying "No" in their referendum "bit the hand that has fed them."
Monday, 23 June 2008
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