Obama makes good on threats to hit Irish based US Multinationals

[kerrynorth]

The final nail in the Irish economic coffin? Well we are about to find out the details in the next month. Note how it states that the US government are going to overhaul 'international tax laws'! No waiting around to negotiate with countries that you have taxation agreements with like Ireland, it is just going to be imposed and we can like it or lump it.

Undoubtably it would mean US firms with operations here having to pay tax to the US Treasury on the balance between what they pay the exchequer and what they would have paid in the US i.e. Ireland's Corporation Tax advantage will be wiped out in one fell swoop.

Corporate Tax Increase
Obama proposed $353.5 billion in higher taxes on corporations over the next decade, the bulk of which would come from “reforming” rules that allow U.S.-based multinational corporations such as [COLOR=#0066cc]General Electric Co.[/COLOR] to defer U.S. tax on profits they earn overseas. GE has about $75 billion offshore on which it has never paid U.S. taxes, according to its regulatory filings.
The Treasury officials said they were preparing a more detailed plan on overhauling the international tax rules, which they may make public in the next month.
Obama’s budget estimates that such changes and beefing up Internal Revenue Service enforcement of international tax rules would generate $210 billion in additional revenue over the next decade. He also proposed to limit tax shelters by requiring they serve a business purpose by redefining the tax code’s “economic substance doctrine.”
Bloomberg.com: Worldwide

[Edo]

Sure they come here for the fantastically educated workforce don't ya know

[bluefish]

Could they not just list themselves as no longer a US business?

Re register as a Irish business?

[Rocky]

Sure they come here for the fantastically educated workforce don't ya know

Yeah we're screwed.

At least I can always say I backed McCain.

[drbob1972]

merde[COLOR=White]..............[/COLOR]

[thegreenman]

watch for the obama deception hitting the net in full movie mode in the next month... change my hoop

[Question R24U]

No doubt our EU partners will back us up and oppose unilateral amendment of tax agreements. Perhaps Lisbon leverage will only go so far.

[PhoenixIreland]

Way to make it seem as if this is a specific attack on Ireland Kerrynorth

You'll also note Dell was hightailing it out of here even before this happened.

1. If this resulted in FDI flight from Ireland surely that would be out own fault for relying so much on the 12.5% CT while our education system decayed and infrastructure developed at a snails pace.

2. Will this actually affect us? Isn't most of the US-FDI here to gain access to the European market? surely they can't do that from the rust belt in the US?

[anewbeginning]

I think we should be ok....Most of their EMEA HQs are here. I don't think it makes much sense to have your EMEA HQ in the states with the time difference and all that and since all your customers are in Europe.

It's outsourcing to India, China, etc that Obama needs to tackle.

[Bobert]

What's FDI from the US worth to us?