GOVERNMENT MUST RESPOND TO TRUMP PLANS ON CORPORATE TAX
Labour spokesperson on Jobs, Enterprise and Innovation, Alan Kelly, has called on the Government to outline how it plans to respond to President-elect Donald Trump’s proposals to slash the US corporate tax rate from 35 to 15 per cent.
The tax measures, which are outlined in Mr Trump’s ‘America First’ economic plan, would also end the current tax deferral on future profits of multinationals until they are repatriated.
“Donald Trump’s election as the 45th president of the United States overnight could have implications for Ireland’s ability to continue attracting US multinationals here, with analysts already warning of a possible investment backlash.
Our 12.5% corporation tax rate has been the cornerstone of our industrial strategy for nearly two decades. If Mr Trump follows through on plans to slash the US corporate tax rate to 15 per cent, it could undermine the effectiveness of our corporate tax rate to attract business to Ireland.
The American Chamber of Commerce puts US investment in Ireland collectively at $343 billion. Furthermore it says Ireland, which represents around 1 per cent of the European economy, attracted 20 per cent of all US Foreign Direct Investment to Europe last year.
Along with mooted proposals from the UK Government after the Brexit referendum to reduce Britain’s corporate tax rate to 15 per cent or lower, we now need to fundamentally reassess and consider our future strategy on attracting foreign direct investment in an uncertain environment.
The Government needs to make clear what strategy it is developing to address the potential impact on the economy.”