New US tax plans could pose significant threat to US multinational jobs here – Maurice Quinlivan TD
Sinn Fein Jobs spokesperson Maurice Quinlivan TD has said the cut in the corporation tax rate in the US, announced by President Donald Trump today, is a major threat to Irish jobs in US multinational companies.
President Donald Trump today announced his intention to dramatically cut corporation tax from 35% to 15% to encourage US multinationals to move operations back to the United States.
Speaking from his constituency office in Limerick, Teachta Quinlivan said;
“US multinational jobs have been a cornerstone of FDI investment in Ireland over the years and represent a significant proportion of all FDI employment in the state. In fact over 150,000 people are directly employed in over 700 US firms in Ireland accounting for over 74% of all IDA supported employment. This figure does not include the thousands of indirect jobs supported by these companies.
“Today’s announcement aimed at attracting US companies currently located abroad, back to the States, should not come as a surprise, as President Trump outlined his intentions throughout his campaign and since his election.
“During his campaign he said he wanted to cut the corporate tax rate from 35% to 15%, and he proposed a one-time 10% repatriation tax to entice companies to bring their overseas cash back home.
“In his first press conference as President he singled out the pharmaceutical industry as a key area he intends to tackle in his presidency, saying, ‘We have to get our drug industry coming back. Our drug industry has been disastrous. They're leaving left and right. They supply our drugs, but they don't make them here.’
“The pharmaceutical industry In Ireland accounts for just over half of the value of all Ireland's goods exports - some €64 billion and employ over 24,500 people here.
“Today’s confirmation that he plans to proceed with his campaign promise closes the gap on Ireland’s competitive corporation tax significantly. Although it is unlikely that this tax reform will be implemented without radical budgetary reform, which could take time, Ireland should still be prepared for whatever action the US administration takes.
“The government must ensure that multinationals located here are encouraged to stay and provided with the resources and support they need in continuing to employ thousands of Irish people.
“We need to ensure that we diversify the origins of Foreign Direct Investment we attract to Ireland, to ensure we are not exposed to any significant changes in circumstances in these corporations’ home countries. The IDA must be provided with the adequate resources to increase FDI investment from emerging economies.
"Minister Mitchell O'Connor needs to acknowledge this challenge from the US and outline a plan to ensure Ireland remains an attractive place for US and other multinational companies to locate."