Trumps tax bill clears Senate Budget Committee. US 20% corp tax rate looms closer. Impact on Ireland?

robut

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Trumps tax bill clears Senate Budget Committee. US 20% corp tax rate looms closer. Impact on Ireland?

Tax bill clears Senate Budget Committee

The Senate Budget Committee on Tuesday advanced the chamber's GOP tax bill.

The measure was approved by a party-line vote of 12-11, with two key Republicans voting for the measure after previously expressing concerns.

The vote sends the measure to the Senate floor, where the bill could start to be considered as early as Wednesday. Overhauling the tax code is a top priority for Republicans and they are hoping to get legislation to President Trump's desk by Christmas.
So the USA 20% corporation tax is looming nearer?

I realise its 20%, still higher than our 12% BUT will this still have impact on Ireland and US FDI here?

Or is it all a storm in a teacup .. nothing to see here folks?
 


HarshBuzz

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Tax bill clears Senate Budget Committee



So the USA 20% corporation tax is looming nearer?

I realise its 20%, still higher than our 12% BUT will this still have impact on Ireland and US FDI here?

Or is it all a storm in a teacup .. nothing to see here folks?
unless they detach Maine from the mainland US, float it over the Atlantic and declare it to be part of the EU (which let's face it, wouldn't be the maddest idea of 2017), then the answer to your question is 'No'.

The US FDI here is predicated on our membership of the EU.
 

robut

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Donald Trump singles out Ireland in tax speech

US President Donald Trump has again name-checked Ireland as he vowed to bring back “trillions of dollars” in wealth back to the United States.

In a speech to supporters in St Charles Missouri on Wednesday Mr Trump said he would not “name names” as he spoke at length about how other countries had attracted US investment at the expense of America.

But he went on to single out Ireland, as he pledged to attract US multinational investment back home. Having described how Apple and other companies had kept billions of dollars offshore, he said that American companies had for too long been incentivised to leave for other countries like Ireland.

“For too long our tax code has incentivised companies to leave our country in search of lower tax rates. It happens – many, many companies. They’re going to Ireland. They’re going all over. They’re going all over Asia but they’re stopping because they now want to take advantage of what’s happening and what we’re about to pass hopefully,” he said. “My administration rejects the offshoring model.”
 

robut

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‘Trump slump’ hits president’s hotels worldwide - but not in Ireland

Donald Trump’s Doonbeg hotel is the only one of 13 of his hotels that has avoided a slide in room rates since his inauguration.

Of the 13 properties included in a study by FairFX, a UK-based currency and payments provider, all but Doonbeg have seen room prices drop between January 2017 and January 2018. Collectively, the 13 properties have seen a decline of an average 36 per cent.

... Only Mr Trump’s Doonbeg hotel saw an increase in rates. A stay at Trump International Golf Links and Hotel Ireland rose from £334 to £357 (€374 to €400). This year will be the best year of trading at the Co Clare hotel since it opened in 2006, according to according to Evan Butler, director of sales and marketing.
Ah shur Paddy loves to be the best boy in class and to be SEEN ...
 

dizillusioned

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I said this a LONG time ago, this will have impacts on a global scale.

Tax rates for corporations are ridiculous in the USA. Ireland has benefitted by the low to nonexistent tax paid by these large multinationals on profits.

Tax rates on Individuals are lower in the US than in Ireland. Yet you pay more in State taxes etc due to the Property Tax etc... this deduction for personal income tax (SALT) is being done away with. Which will lead to State and Local Taxes increasing and hence the tax "reduction" for many being a tax increase.

Corporations which use international tax rules to hide money in off-shore accounts i.e. Bermuda etc. etc. due to "Royalty payment rules" are not going to bring that cash back into the US for the most part. It will be advantageous to many corporations to find the loop holes in the US tax system and abuse it (like they do now). I think Trump's idea to lower corporation tax is absolutely necessary to expand production within the USA.

Will it happen??? I doubt it.... wages are too high here
 

Dame_Enda

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Even Murkowski is a yes which is very difficult. Appears linked to the bill allowing drilling in the Arctic Wildlife Reserve.
 

gleeful

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It should be repeated that Ireland doesn't compete with the US on corporation tax because US Corps pay 0.0% corporation tax on their foreign earnings so long as they never bring them home.

0.0% is a lot less than 20%
 

robut

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gleeful

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Still dont see how it makes any difference. The IP is already 'resident' in the US. Thats what allows these companies to pay 0% Irish tax and 0% US tax. These are US profits which remain untaxed by the US.

If the US closes that loophole, well 12.5% is lower than 20% isn't it.

Its a myth that Ireland allows companies to avoid US tax. We actually allow companies to avoid German and French tax.
 

constitutionus

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CNBC reporting McCain is on board for the bill.
 

boldfenianman

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Some of you seem to have a misunderstanding of why US FDI is here at all. They are not here for the good of OUR health. They are here to service the European market. More particularly the EU market. Just as European companies , including many Irish , set up in the US to service that market. The only real issue re this announcement is that retained profits currently held in Europe may now be re-patriated.
 

gleeful

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Some of you seem to have a misunderstanding of why US FDI is here at all. They are not here for the good of OUR health. They are here to service the European market. More particularly the EU market. Just as European companies , including many Irish , set up in the US to service that market. The only real issue re this announcement is that retained profits currently held in Europe may now be re-patriated.
Taxing profits held abroad is actually a great thing for Ireland. It will encourage US multinationals to restructure so that they get taxed in Ireland at our lower 12.5% rate.
 

constitutionus

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Apple goin full in on it.

Breaking on CNBC now.
 

constitutionus

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sorry was on the phone till recently

here a copy and paste of me post in the "immdediate effects of donald trump" thread

MASSIVE news.

Apple to repatriate almost all its cash pile. Lookin like 200 bil or so.

Theyre stating they're to pay 38bil in tax. To the US government.

Also talk about 350bill to be invested in America over next 5 years and create 20k jobs


All down to trumps tax plan.
by my maths its somewhere around 250 BILLION or so theyre bringing back. which IIRC is the vast guts of its 300 billion off shore.

dont know why they worded it the way they did in their release to CNBC , only sayin how much in tax they'll be paying on it, but its at 15.5% so ya can work it out easily enough.

EDIT.

more on it as the story develops.

http://www.oregonlive.com/business/index.ssf/2018/01/apple_will_build_second_campus.html
 
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