Friday, 14 February 2014

Inequality for All

TASC's screening and panel discussion at the Jameson Dublin International Film Festival was one of the first films to be sold out! Robert Reich's Inequality for All provides an entertaining, but stark picture of the growth in inequality in recent decades. Reich shows how wage-led recovery and a greater income share across society provides a path to a stronger, more sustainable and equitable economy.

TASC will be video-recording the panel discussion that is part of the screening and this will be available on our website. The panel will be chaired by RTÉ's Sean Whelan and features Margaret E Ward, Marie Sherlock, Colm O'Regan and Nat O'Connor.

TASC has created a mini-site to give more information about the film, and a range of facts about economic inequality in Ireland: check out

Three Economic Lessons

Professor Robert Reich presents "Why The Three Biggest Economic Lessons Were Forgotten" on Social Europe Journal:

"First, America’s real job creators are consumers, whose rising wages generate jobs and growth. If average people don’t have decent wages there can be no real recovery and no sustained growth.

"Second, the rich do better with a smaller share of a rapidly-growing economy than they do with a large share of an economy that’s barely growing at all.

"Third, higher taxes on the wealthy to finance public investments — better roads, bridges, public transportation, basic research, world-class K-12 education, and affordable higher education – improve the future productivity of America. All of us gain from these investments, including the wealthy."

TASC is hosting a panel discussion (SOLD OUT) as part of a screening of Reich's documentary, Inequality for All, as part of the Jameson Dublin International Film Festival.

Monday, 10 February 2014

An Assessment of the PWC/World Bank 'Paying Taxes' Report

Prof. Jim Stewart (Associate Professor of Finance TCD School of Business and member of TASC's Economists' Network) has published an assessment of the PWC/World Bank 'Paying Taxes' Report, which can be read here.

Summary: "The PwC/World Bank ‘Paying Taxes 2014’ shows cross country comparisons of various aspects of the tax system as they affect companies, for example ease of compliance. In Ireland this Report is frequently cited in media coverage to the effect that reported effective profits tax rates in Ireland (shown as 12.3% in the Report published in 2013) are higher than those in France (8.3%) and other countries. The Report is based on a hypothetical (fictional) company which is small, domestically owned, has no imports or exports and produces and sells ceramic flower pots. These and other assumptions automatically rule out many tax minimisation strategies. This note assesses the claim that this report shows effective tax rates in Ireland are close to or above those in other countries such as France. It is argued data from the US Bureau of Economic Analysis gives a more accurate estimate of effective tax rates for US subsidiaries operating in Ireland and elsewhere. This data shows that for 2011, US subsidiaries operating in Ireland have the lowest effective tax rate in the EU at 2.2%. This tax rate is not that dissimilar to effective tax rates in countries generally regarded as tax havens such as Bermuda at 0.4%."