Willie O'Dea (Limerick City, Fianna Fail)
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Question 160: To ask the Minister for Jobs, Enterprise and Innovation if he has investigated the likely effects of an increase in Ireland's corporation tax on employment, the presence of multinational corporations and any other macroeconomic effects; and if he will make a statement on the matter. [40494/11]

Richard Bruton (Dublin North Central, Fine Gael)
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Ireland's 12.5% corporation tax trading rate forms the cornerstone of our attractive international tax offering and has become an international brand name. Any change to the 12.5% rate would damage this brand name by indicating a lack of long-term commitment to certainty, a very important criterion for companies considering an investment in Ireland. In his recent Budget speech the Minister for Finance reaffirmed the Government's Programme for Government commitment to retain the 12.5% corporation tax rate.

There is a sound rationale underpinning our commitment to this sustaining this rate. Not only is it important for competitiveness. Empirical evidence obtained by the OECD during an ongoing study of the impact of various categories of taxation on economic growth across a range of jurisdictions suggests that corporate taxes are the most damaging category in terms of impact on economic growth, followed by income taxes as the second most damaging category and indirect taxes as the third most damaging category, with annual property related taxes being the least most harmful category in terms of adverse impact on economic growth. The impact of alternative categories of taxation on economic growth and job creation is more significant in the case of a small open economy such as Ireland. Hence the tax focus of Budget 2012.