Monday 25 June 2018

Trump's corporate tax threat downplayed

US President Donald Trump name-checked Ireland as he argued for 15pc corporate tax in the US
US President Donald Trump name-checked Ireland as he argued for 15pc corporate tax in the US
Colm Kelpie

Colm Kelpie

Business experts here have downplayed US President Donald Trump's push to lower his country's corporate tax rate to 15pc and any potential impact on Ireland.

On Wednesday, Mr Trump reiterated his plan to dramatically cut the business tax, name-checking Ireland as a destination with a lower rate that America's.

Tax reform and bringing US jobs back home was a consistent theme of the president's election campaign, sparking speculation here that Ireland's multinational sector could be affected. So far though, there's been scant progress by the Trump administration on that pledge.

"It's difficult to see exactly what will get past [in Congress]. There will likely to be some rate reduction, but I don't think it will be down in the 15pc that he is saying," Louise Kelly, tax partner at Deloitte, told the Irish Independent. "I think it's a call to politicians to get down to work and come up with a plan, but I don't think there's any agreement behind the scenes yet, or that it's moved on."

The IDA declined to comment on President Trump's plan. However, the American Chamber of Commerce Ireland reiterated its stance that international businesses come to Ireland for more than the tax benefits, citing the educated workforce and easy of access to mainland Europe.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business