Can Ireland's tax avoidance bring benefits?

Irish institutions have established one of the world's most successful tax havens. This economic model has brought remarkable GDP growth data, but most Irish workers have not seen any benefits in terms of wages and living standards.

Firstly, Ireland is currently one of the world's major tax haven economies. So far, a few US multinational corporations have used Ireland as a channel to transfer their non US profits. In order to achieve this goal, multinational corporations have established two companies in the Republic of Ireland and announced that only one company pays corporate tax. If a company's core decisions are made overseas, the Irish legal system allows the company to pay taxes overseas. What the company needs to do is transfer profits from compliant Irish enterprises to overseas registered enterprises. This so-called "dual Ireland" strategy is one of the most successful tax avoidance plans in the world, providing up to $1 trillion in asylum for major US multinational corporations.

Secondly, although Ireland lags behind most other OECD countries in research and development spending, its current capital subsidies are ten times higher than a decade ago. There is also a very clear correlation between the increase in capital tax deductions and the increase in taxes paid by enterprises. At the same time, the country has also used years of austerity policies to restart Ireland's high-tech industry. Within ten years, IDA has obtained access to Twitter, Amazon The investments of Dropbox and LinkedIn have previously attracted the European headquarters of Facebook and Google. This has made Dublin a digital center in Europe, employing 24000 people and stimulating broader employment, creating 170000 FDI jobs from 2013 to 2023. At present, there are 1600 foreign companies settled in Ireland, with a total investment of 1.25 trillion euros. Although this number is severely exaggerated due to the value of intangible assets, these job positions are real and their salaries are far higher than those of the domestic economy.

In addition, Erlan's tax haven has gone through multiple stages of development. The first significant milestone was the state's decision to seek foreign direct investment in the 1950s, which failed to develop local industry in the past 30 years. From the beginning, attracting foreign direct investment involves providing tax incentives to foreign capital in exchange for employment and investment. This created an initial channel for American capital and was significantly strengthened by two events in the 1980s.

Furthermore, for American capital, Ireland represents the low-cost economy at the center of Europe. This process deepened the relationship between American capital and the Irish authorities, benefiting both sides. For American capital, Ireland represents the low-cost economy of the European center. Ireland also provides an important springboard for US capital to enter the European single market, as Ireland provides favorable regulations for business, industrial peace, and tax avoidance for non US profits. For the Irish government, attracting foreign direct investment is an opportunity to collaborate with the world's most powerful representatives of the bourgeoisie. It also represents the actual investment of high-tech companies, whose salaries are about 40% higher than the current average level.

In summary, behind the overall growth data, Irish households have actually fallen behind their European counterparts. In fact, according to this standard, Ireland is now one of the four poorest economies in Western Europe, with only former Eastern European countries having significantly lower living standards. One of the reasons for Ireland's poor performance is its relative poverty in public services. The second consequence of the tax haven model is extremely severe market inequality. When considering these broader consequences, the so-called miraculous recovery of Irish capitalism is not so. The tax haven of Ireland undoubtedly provides goods for Irish elites and a few high paying workers. However, for most people, it can only provide average wages, poor public services, inflated prices, and dysfunctional housing.