Peadar Tóibín (Meath West, Sinn Fein)
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To ask the Minister for Finance if he will detail research produced or identified by his Department that examines any correlation between the marginal rate of tax, foreign direct investment and job creation. [51875/12]

Michael Noonan (Limerick City, Fine Gael)
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My Department considers various research publications and reports on an on-going basis as part of the process of developing tax policy.

While the Department has not published its own research in relation to the points raised by the Deputy, I would refer to the OECD Report, “Tax Effects on Foreign Direct Investment – Recent Evidence & Policy Analysis” (2008) OECD Tax Policy Studies No. 17, which found that a 1% increase in the corporate tax rate reduces inward investment by 3.7% on average. Another report by the OECD, “Tax Policy Reform and Economic Growth” (2010) OECD Tax Policy Studies No. 20, corporate taxes were identified as the tax which are most harmful to economic growth prospects.

The above is just a sample of the types of reports that my Department has identified as being relevant in looking at the relationship between tax, foreign direct investment and job creation.