President Donald Trump’s Administration has revealed today plans that could very well make a major impact on foreign direct investment into Ireland.
Speaking today, the US Treasury Secretary Steven Mnuchin said that the Administration purposes to cut the US corporate tax rate from 35% drastically back to 15%, just 2.5% more than Ireland’s 12.5% attractive rate.
“Since the 15% has been in the press for the last couple of days, I will confirm that the business tax is going to be 15%,” Mr Mnuchin said at a discussion about the much-anticipated tax plan.
“What this is not going to be is a loophole to let rich people who should be paying higher rates pay 15%,” he continued.
It’ll remain to be seen whether foreign direct investment will dry up to a degree as a result but it’s almost a certainty that with the amount of funding ploughed into such companies as Facebook and Google etc they will almost definitely not pull out of Ireland as a result of the new American corporations tax.