Did anyone say anything about a soft landing?So - y'all have heard by now that Trump intends to drop the US Corporation tax to about 15% with an even lower 10% to companies who come home.
Add this now, as of TODAY 21/11/2016 - PM promises businesses tax cut but cools on workers on boards plan
EDIT: Thanks to Oscurito:
Hungary to cut corporate tax rate to lowest in EU
With respect to our Corporation Tax as the main leg of our economic plan, I have been hearing IBEC and other biz bods saying Nothing to see here folks, doesnt matter. We are more than out corporation Tax rate. FDI comes here primarily for our highly educated workforce and as a base to access Europe .. so no worries from these guys. Is this the usual green jersey crap OR is there any truth to this?
So is the jig up? OR is all this really a non-story, nothing to worry about?
Wait till Noonan or his successor put the plan into place to start raiding peoples savings to bail out the banks the next time.....Heading for rocky times ....hang on to your hats and euros....
Approx 70 percent of MNC employment in Ireland is in US companies. You are right Apple isn't going to uproot overnight. But the fact is that there is significant change of mandate within these operations all the time so you have to be constantly winning new investment to replace what has become redundant. The foreign owned sector created no net new jobs between 2000-2014. Employment remaind below the 2000 peak of 184k throughout that whole time. That is how competitive an environment it is. Now with Brexit and Trump it will become much harder to win new investment to replace what will become obselete in these operations. So I would expect to see a gradual decline in numbers employed in the foreign owned sector.MNCs locate to other jurisdictions for any number of reasons, and they're not all of American origin, by the way.
It is important and likely vital for some operations like call centres or office backup, less so for established capital intensive operations.Do you not think our low rate of corporate tax rate is important? That's the only point I was making. I'm not in favour of low taxes and am against the race to the bottom.
I'd rule point (a) out based on what I observe everyday in the US multinational that I work for.Other jurisdictions lowering their rate of corporation tax, will test the assumptions made by this jurisdiction that foreign companies come to Ireland because
(a) we've the brightest workforce in the whole wide world
(b) we speak English.