Concerns Raised Over Impact Of Trump's Tax Plans On Ireland

Concerns have been raised over the impact of US President-Elect Donald Trump's plans to reduce American corporation tax to 15%.

Sinn Féin and Labour have both called on the Government to address concerns over the impact such a tax policy could have on Ireland.

The tax measures were outlined in Mr Trump's 'America First' economic plan and see US corporation tax cut from 35% to 15%, while also ending the current tax deferral on future profits of multinationals until they are repatriated.

Labour spokesperson on Jobs, Enterprise and Innovation, Alan Kelly, said: "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."

Sinn Féin's Spokesperson on Jobs, Enterprise and Innovation, Maurice Quinlivan, has accused the government of being "woefully unprepared" for the impact of Trump's planned tax policies.

Deputy Quinlivan said: "The comments made by US President-Elect Trump's senior economic advisor, Stephen Moore, are extremely worrying.

"The Irish government is already chasing its tail as it is clear that it doesn't have a credible plan to deal with the seismic economic shock instigated by Brexit.

"In terms of developing our attractiveness to international companies, Ireland is overly reliant on our corporate tax rate. After eight years of brutal austerity, the appeal of this state for such investment has been completely undermined by policies that have left us with a creaking public infrastructure due to chronic underinvestment.

"It is obvious that Ireland is woefully prepared for this prospect because, rather than broadening the attractiveness of this state for investment by decreasing reliance of low corporation tax, successive government's have chosen to decimate the other key element that investors look to when assessing and comparing countries when deciding where to locate. This element is our public infrastructure.

"With Brexit to the west and a Trump Presidency to the East, the government must now wake-up and get real about the seriousness of threat to the sustainability of enterprise in Ireland."


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