Trump Tax plan .. Implications for Ireland / FDI etc

robut

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Trump tax plan to slash US corporate tax rates, raising job fears here - Independent.ie

US President Donald Trump is proposing to slash the corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said - a move that could have major implications for Ireland.

With financial markets eagerly anticipating a White House tax plan, Trump will also call for a sharp cut in the top rate on pass-through businesses, including many small business partnerships and sole proprietorships, to 15pc from 39.6pc, an administration official said.

.. He will propose cutting the income tax rate paid by public corporations to 15pc from 35pc, and allowing multinationals to bring in overseas profits at a tax rate of 10pc versus 35pc now, the official said.
This plan is being announced today - Wed. 26th April 2017 - apparently. Corp tax to 15% though the hill not too happy with this, particularly due to US debt.

LIVE at 6.30pm here:

[video=youtube;EMFiXhsX9Mk]https://www.youtube.com/watch?v=EMFiXhsX9Mk[/video]

Of course Noonan and Co here are doing the "Nothing to see here folks, shur it will all be fine" thing.

“You can have a principle that is very good, but it's only when you see the detail that you see if there's any problem to me. No one signalled any problems to me for Ireland on what's coming out in the US” he ( Noonan ) said.
Maybe they are right? Something like this isnt going to happen over night and like many other Trump things it might get bogged down in congress?

Oh look I have talked my self out of the panic over this .. nothing to see here folks :D

What do ye think?
 
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SamsonS

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Do I think it will be an issue...yes, especially in the ongoing the battle to secure new/replacement FDI. (We sometimes forget that a do nothing policy is not an option, as we lose a significant amount of FDI jobs each year, so have to keep working hard to create new ones to at a minimum replace the ones we are losing...and that has been the case for a very long time).

Does Min response surprise me. No..what was he supposed to say "this could be a disaster" or "we'll have to change our policies" '- how would that help IDA staff trying to meet with executives and persuade them to invest here? .....he waffled on about needing to see the detail but not anticipating any problems for Ireland. Privately he/dept/IDA might have a very different view.
 

robut

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Do I think it will be an issue...yes, especially in the ongoing the battle to secure new/replacement FDI. (We sometimes forget that a do nothing policy is not an option, as we lose a significant amount of FDI jobs each year, so have to keep working hard to create new ones to at a minimum replace the ones we are losing...and that has been the case for a very long time).

Does Min response surprise me. No..what was he supposed to say "this could be a disaster" or "we'll have to change our policies" '- how would that help IDA staff trying to meet with executives and persuade them to invest here? .....he waffled on about needing to see the detail but not anticipating any problems for Ireland. Privately he/dept/IDA might have a very different view.
Thats why I asked "What do ye think?" .. to read between the lines so to speak, thanking you!
 

mossyman

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Thats why I asked "What do ye think?" .. to read between the lines so to speak, thanking you!
Ireland will continue to win investment if this goes through, but it will make it a lot more difficult. One of our big advantages will not be so powerful. We will still have a low corporate tax rate compared to our European peers and many US companies will still want a base in Europe. Its bad but not the end of the world.
 

robut

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Bit more detail on the over all tax plan, not just corp tax:

Trump tax plan billed as 'largest tax reform' in US history | KSL.com

I would say the corp tax drop from 39.6% to 15% might turn out to be way too much. I reckon if it does drop it might be statged, similar to UK. I reckon might drop to somewhere between 35% and late 20s at most which will have little effect on Ireland?

"There's no question we should try to reduce (the corporate tax rate), but I don't see how you pay for getting it down that low," Casey said. "Fifteen percent, that's a huge hole if you can't make the math work."
 

mossyman

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robut

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I think Paul Ryan was previously talking about bringing it down to 25 percent. More realistic.
Lets hope so - It would mean one of the bigger threats to Irish Economy is gone ( the other being Brexit )
 

robut

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US Treasury's Mnuchin confirms that business tax will be 15% in Trump tax reform plan – Reuters – FOREX | Breaking News

More headlines are hitting the wires, via Reuters, from U.S. Treasury Secretary Steven Mnuchin, as he confirms that business tax will be 15% in Trump tax reform plan.

Key quotes (via Reuters):

- Administration will release details of tax plan later on Wednesday
- Small business will have the benefit of business rate
- There is fundamental agreement with congress on goals of tax reform, details to be worked out
- Administration does not think border tax will work in its current form
- Administration aims to take up Fannie and Freddie reform in latter half of 2017
- Trump tax plan will include proposed increase in standard deduction that individuals can claim on tax returns
 

silverharp

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good for the US, it would be great that if over time Trump got the tax code simplified for companies and people.
 

robut

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A fatal flaw in Trump's tax cut: Senate rules - CNNPolitics.com

President Donald Trump's ambitious goal of reducing the corporate tax rate from 35% to 15% without concern over deficits has a fatal problem: Senate rules.

That's per the Joint Committee on Taxation, which in a private analysis requested by House Speaker Paul Ryan and obtained by CNN, found that a significant corporate rate cut (in this case, from the current level of 35% to 20%, which House Republicans have proposed) for just three years would result in deficit increase after 10 years.
 

Betson

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It will have little effect on us , companies move here for the tax rate and unrestricted access to the European single market. The US lowering their corporate tax rate will not stop US companies investing in Europe.

Also our tax rate is written in stone at this stage , very unlikely any future Irish Government will tinker with it , that is a big selling point , the same cannot be said for future US administrations.
 

Spanner Island

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Trump tax plan to slash US corporate tax rates, raising job fears here - Independent.ie

This plan is being announced today - Wed. 26th April 2017 - apparently. Corp tax to 15% though the hill not too happy with this, particularly due to US debt.

Of course Noonan and Co here are doing the "Nothing to see here folks, shur it will all be fine" thing.

Maybe they are right? Something like this isnt going to happen over night and like many other Trump things it might get bogged down in congress?

Oh look I have talked my self out of the panic over this .. nothing to see here folks :D

What do ye think?
Corp Tax down to 15%???

From 35%???

I doubt that will happen in one cut. I would imagine it will take some years to implement a drop like that...

With Trump and Brexit we are more than likely heading for a sh!t storm though...

It's one of the reasons I suspect the trade unions are getting bolshie... cos that's what they do...

When things look dodgy ahead (and things could get very dodgy for Ireland) the unions look for more money...

In fact unions looking for more money could be regarded as a sign of rough times to come... like a canary down a mine.
 

robut

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Mnuchin, Cohn expected to roll out Trump tax plan | TheHill

It appears President Trump will not roll out his tax plan in person.

The administration is set to reveal its plan on Wednesday, with Secretary of the Treasury Steven Mnuchin and National Economic Director Gary Cohn scheduled to appear at the White House press briefing that afternoon.

Their 1:30 p.m. appearance before the press ..
So 1/1.30ET is 5/5.30PM here
 

robut

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Watching Twitter etc .. the markets are all a flutter as they wait for this announcement .. its like their first disco :D
 

Surkov

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Corp Tax down to 15%???

From 35%???

I doubt that will happen in one cut. I would imagine it will take some years to implement a drop like that...

With Trump and Brexit we are more than likely heading for a sh!t storm though...

It's one of the reasons I suspect the trade unions are getting bolshie... cos that's what they do...

When things look dodgy ahead (and things could get very dodgy for Ireland) the unions look for more money...

In fact unions looking for more money could be regarded as a sign of rough times to come... like a canary down a mine.
It might be lowered down to 15% in stages, but it would all be accomplished within Trump's first term? He will want it to point to as a major accomplishment when election time comes.
 

robut

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If you're particularly interested, the White House press briefings are streamed live on youtube by multiple users.

The White house has it's own youtube account. + Fox 10 Phoenix usually stream it live on youtube too.
Keeping an eye ..

It should be of great interest to everyone here :D .. has huge potential impact on Ireland PLC over next few years ..
 


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