This could be a disaster for Ireland

zod

https://www.youtube.com/watch?v=3T5O_WcLs1A

Administration officials depicted the move as a way to close unfair tax loopholes that encouraged companies to send jobs overseas. They argued that if it costs the same amount to do business in, say, Ireland as in Iowa, why not do it entirely in Des Moines? Officials said Obama would characterize the move as a way to keep jobs in the United States and fight a system that is rigged against U.S. companies who keep their entire business operation domestic

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http://www.google.com/hostednews/ap/article/ALeqM5gpKlcN2oB5og6-h34ilV1flq338wD97VGQH01

Mac daddy

they are on about this at the moment on the news.

johnnyskeleton

I'm not sure that it will mean American companies pulling out overnight; however, it certainly will act as a disincentive to any new companies coming here.

Am I right in saying that it doesn't go so far as to tax american companies the difference between what they pay in corporation tax here and what they would in the US? It seems to me that all it will do is remove the 1 man offices that are the international headquarters of major corporations. The likes of Microsoft, Intel etc should remain unaffected if I understand it right.

ArraMusha

johnnyskeleton wrote: »

I'm not sure that it will mean American companies pulling out overnight; however, it certainly will act as a disincentive to any new companies coming here.

Am I right in saying that it doesn't go so far as to tax american companies the difference between what they pay in corporation tax here and what they would in the US? It seems to me that all it will do is remove the 1 man offices that are the international headquarters of major corporations. The likes of Microsoft, Intel etc should remain unaffected if I understand it right.

I hope so to. The one man offices for headquarters here when there is no major operation here is fair enough. However if there is a major R+D or manufacturing operation here then paying tax here should be OK.

DroghedaColeen

Would he really do it to us??? And what would the consequences be?? Certainly in America the Irish-Americans are very protective of the Irish and the island in general, so he would lose a lot of fans.......Some of the 40 million 'Irish; that helped get him to where he is actually. Dangerous moves, Barack. Check out what the Irish-Americans are saying
http://www.irishcentral.com/news/Irish-economy-at-risk-in-Obama-tax-plan.html

kippy

As I said on a similiar thread,
Wasnt this or something similiar on the cards ever since BO got into power?

RealityCheck

It is this type of protectionism that will leave us in a downward spiral for quite a while yet.

murphaph

He's looking after his own. Can't fault the man. If only irish politicians had had the balls to push our own companies to develop rather than rely on easy FDI jobs we'd be less fearful of the US puling out. We might have to leave the EU and join the US....if they'll have us!

ionix5891

a building in the Cayman Islands where more than 18,000 US companies are housed



damn they make Ireland look good

on other note this could mean more job losses here, alot more :rolleyes:

Sand

And this is why I would have preferred McCain...

Going to be interesting to see if the media here continue with the long distance love affair or if there will be a more rational, realpolitick assesment of Obama and his polices and how they are going to impact us.

Would he really do it to us???

Why wouldnt he? Irish Americans are Americans first and foremost. Shouldnt overestimate their interest in or links to Ireland. Especially as the links that do exist become more and more distant with reduced migration. If they are in favour of Obama in general, their opinion is hardly going to be reversed by Obama closing some loop holes in its tax code.

It is this type of protectionism that will leave us in a downward spiral for quite a while yet.

It depends on the detail - if hes closing tax evasion ( he mentioned companies claiming to pay tax elsewhere to each government, and in effect paying no tax at all) then no real issue. Otherwise...it could have unintended consequences.

asdasd

Ireland and the Cayman Islands are not comparable, as the companies here actualy do produce some stuff.

I think the proposals a bit skewed actually, and may work in our favour. Obama seems to think that American companies should declare most of their profits in America regardless of where they are made. What if MS Europe + Middle East makes more profits - from what is localized in Dublin than the American counterpart. Is Obama saying that that is tax evasion? Is he saying that the majority of profits should be declared in America rather than where made.

Now, I know there is transfer pricing and maybe that should be outlawed - if possible - but this is a over wrought proposal.

There is a misunderstanding of multi-national companies loyalties. The argument that American corporations pay 2.3% tax clearly means in America - but if they produce elsewhere they should pay elsewhere, so that is not all tax evasion - some is, some isnt.

there may be a real law of unintended consequence here. Since most agree it is legitimate for an American company to pay tax where it produces stuff the AMerican company could prosper by sending all its workers overseas,, leaving a hub behind as a HQ ( or even move that).


the other law of unintended consequence is that we can raise our corporation tax to the American level without penalty. The companies need to be in Europe anyway, and have to pay 35% anyway. We could take it.

Cant see that the US is going to benefit.

T Corolla

IMO I think this has more to do with companies that do not pay tax at all
I cant see American companies pulling out of Ireland be a good public relations step for America. Does this mean that Obama will make it harder for foreign companies to invest in America I don't think so. I cannot get an accurate number for the amount of foreign companies in business in America does anyboby know what it could be

redtom

DroghedaColeen wrote: »

Would he really do it to us???

What are we, the fifty-first state?

kippy

T Corolla wrote: »

IMO I think this has more to do with companies that do not pay tax at all
I cant see American companies pulling out of Ireland be a good public relations step for America. Does this mean that Obama will make it harder for foreign companies to invest in America I don't think so. I cannot get an accurate number for the amount of foreign companies in business in America does anyboby know what it could be

I do know that approximately 90,000 people are employed in the U.S by Irish companies. (allegedly - this was touted during the recent trade trip to the US around March)

zod

first place to the register for most emotive headline :

"Obama declares war on Ireland over tech tax avoidance"

http://www.theregister.co.uk/2009/05/05/obama_tax/

carlmango11

I think the best retaliation is to strengthen the EU and create powerful companies like Hitler did :D We've been relying on foreign companies too long and it's come back to bite us as they're all moving to cheaper countries.