Ireland has a corporate tax rate of 12.5% The rate in other European states is twice that. The rate in the United States is the highest in the world at 39%.
Though their rate is already low, the Irish are willing to cut them still lower in individual arrangements to bring industries to their country. As a result, high-tech companies, including Apple, have opened countless operations in Ireland, and the Irish economy is booming.
The European Union believes Apple’s tax deal with Ireland is unfair. The supra-national bureaucracy is mandating that Apple pay back taxes to Ireland, money that Ireland denies that it owes.
The United States is supporting the EU against both Apple and Ireland, claiming that Apple is parking its profits in an off-shore tax shelter that is Ireland, and that our government is entitled to its 39% cut.
Kevin Williamson tells the tale and proposes a startling solution: Why doesn’t the United States cut its exorbitant tax rate so that companies no longer have the incentive to move elsewhere? Why don’t we cut them below that of the Irish to attract global companies to relocate here, thus bringing in all of that investment and employment? The United States, he says, should “be the tax shelter.”
Do you see anything wrong with that?