5. Corporate Profits’ Tax Avoidance: How the “Double Irish” Impedes Global Social Progress and Removes the Prosperity Base Needed for Future Generations

In this chapter, the authors examine the way in which modern countries such as the US and Ireland have devised their tax systems to effectively allow major corporations to largely exempt themselves from tax liability on immense corporate profits. In this race to the bottom, it will become apparent that corporations are using the variances between the different national systems to effectively exempt themselves from contributing their fair share to the well-being of society. The authors look at the case of Ireland in particular, and its role in facilitating wide-scale legal tax avoidance by US corporations. This raises the question, why should global corporations be excessively favoured in this fashion, what role does tax law play, how it is responsible for this widespread phenomenon, and demonstrates how, as one door is closed, Ireland opens another one to allow this whole-scale diminution of the wealth of future generations to be continued.