Coughlan's important meeting with Geithner in US today

[MsAnneThrope]

Proposals to change the tax regime governing US corporations operating overseas

The Obama administration has promised to review rules that allow American companies to defer paying US tax on foreign earnings – a move that could have a major impact on companies operating in Ireland

"American companies would find themselves in a situation that they would be uncompetitive and that they may have to look at various other parts of the world and we wouldn’t have an opportunity to look at building on the huge footprint that we currently have in Ireland"

The outcome of these talks (and upcoming meetings between the IDA and the US) are critical to Ireland.

Do you think we have any hope of the tax system for US Corporations operating here staying as is? If Obama's administration sticks the knife in then I cant see how the Irish economy could ever recover in the long run, even with an upturn in the world economy, if the US multinationals left our shores.

I dont even want to think about the EU forcing our hand on corporation tax down the road.

[Factorem]

I wonder will it be as successful as her little meeting with Michael Dell?

[Pauli]

Coughlan is meeting Geithner?? Coughlan?? Oh. My. God. I really fear for the future of Ireland. This is truly shocking. Lenihan, maybe, but Coughlan???? Jeezez H Kreyst!!

[goosebump]

This is chilling alright.

Maybe they'll just talk about kids and holidays and economic issues won't come up.

*crosses fingers*

[seabhcan]

Obama is quite limited in what he can do. If he imposes high taxes on "American" companies in Ireland those companies can easily switch to being Irish registered companies - it would only take a few hours of paper work.

[MsAnneThrope]

I wonder will it be as successful as her little meeting with Michael Dell?

Wee Willie isn't on this trip so I'd say chances of success are greatly improved Like her or not I really hope she has a good case and does well. Its too important for us. I'm sure shes not alone over there but I've been unable to find out who else is going be in on the meetings. Jackie Healy-Rae?

[MsAnneThrope]

Obama is quite limited in what he can do. If he imposes high taxes on "American" companies in Ireland those companies can easily switch to being Irish registered companies - it would only take a few hours of paper work.

Surely it cannot be that easy Seabhcan? Or can it?

[seabhcan]

Surely it cannot be that easy Seabhcan? Or can it?

Most US companies here are focused on the european market - which is why they set up here rather than cheaper countries like India - to be inside the EU's single market.

They export very little back to the US.

Its a completely different situation from US companies in Mexico, say, which produce for the US market. Its a lot easier to tax companies that need your market.

[MsAnneThrope]

If they were to register as Irish a few things could happen.

• attempts may be made to recoup Grants made to them
• their tax rate would be increased but obviously below the US level
• might the Government try backdate taxes in some way?

Whatever transpires I just hope that additional incentives aren't offered to foreign employers at the expense of indigenous companies, as I believe the latter are key to us getting out of this mess. Just like we've shown that you cant build an economy on houses, we shouldn't try build an economy that is over-reliant on foreign multinationals who could pull out at any moment (as they have been doing for several years but went largely unnoticed until recently, as the country was partying too much to notice)

Where oh where are the incentives for employers (both foreign and indigenous) for job preservation and creation?

[Digout]

If its an important meeting then why is she being sent?