Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I dealt with a number of the issues that have been raised by Deputy Conway-Walsh in the exchange of views I had with Deputy Farrell. I will return to some of the further points that were made by Deputy Boyd Barrett. I want to emphasise the point I made earlier. According to the Deputy's argument, looking at the total amount of tax that is paid on the return from labour income, and comparing it to the total amount of tax that is paid on the return from capital, there is a disparity. He argued that the return on capital is not taxed enough. The point I make in response is that if one breaks down the effective tax rate on differing levels of income, the Deputy's argument does not hold in the way he is making it at the moment. That will likely be the case if the OECD agreement is globally implemented, for three reasons: first, it is an agreement on a minimum effective tax rate and not a nominal rate; second, the impact of country-by-country reporting; and third, the US in particular will have the ability inside its tax regime to collect that minimum effective tax rate if it believes it is not being paid in a country in which an American company is active.

I go back to the figures I shared with the Deputy earlier on. If he accepts that the figure will be 15%, or at least 15% in reality for many, comparing the effective tax rate on lower levels of income, it is lower than 15%. It is lower. That is relevant to the debate that we are having. The argument the Deputy made earlier was the Piketty R and G argument, which is all about comparing the return between the two of them and how they are taxed. In the world that we could be moving into, a big change is happening. That is relevant to the charge the Deputy is making, because through the change that will happen between how larger companies are taxed and the tax that those on lower levels of income pay, the balance is changing. I think it is really relevant to the debate we are having. I agree with the Deputy that we do not always get a chance to debate the big issues enough in the Oireachtas.

I have really good news for Deputy Boyd Barrett. I could be about to make his day, in fact. I have been thinking about a point he made previously. He used the example of a family member coming to him and telling him that they have a really good idea. If he approaches the Revenue Commissioners and tells them that this person has a good idea and he wants to use it to reduce his taxes-----