Apple last year announced the creation of 1000 jobs in Cork.
This was cause for rejoicing, of course. 1000 jobs means 1000 incomes in the area – created externally but spent internally. Contributions in income tax and social insurance will help the revenue, which will also benefit from VAT paid on items and services in local retail outlets, eateries, dry cleaners and all sorts of others – whose business will also itself be further boosted, potentially creating further jobs (even if part time) and so on.
There will even be indirect effects, such as house prices rising, not least because half of the jobs will be taken by foreigners coming into the area and spending locally who otherwise would not have been there to do so.
To repeat, all of this is created by an external company, at no cost to the Irish taxpayer beyond the investment made in the IDA, who try to encourage such job creation for the quite obvious reasons noted above.
Oh, one thing: Apple does not pay any tax in Ireland.
Is that a problem?
That question maybe is not quite so easy to answer in practice as it is in principle, eh?
Indeed, the Irish Government is quite determined that Apple not pay it any tax; precisely because if it was forced to, it may not operate in Ireland at all (thus depriving it of the income tax and VAT revenue its employees deliver and promote).
As a side point, Google’s owner “Alphabet” recently overtook Apple as the world’s most valuable company. It employs 3000 people in the UK, who contribute £150 million to UK revenue in income tax alone.
How is that principle versus practice coming along?