Trina Vargo of the US-Irish alliance offers some advice on how Ireland should respond to Obama’s proposed clampdown on tax havens here. Although this is more of a political approach to the issue than mine of a few weeks ago, she too cautions against over-reacting.
6 replies on “Suggestions for Ireland’s response to Obama’s tax plan”
Interesting that among the points she makes is the “job-creation” of Irish multinationals in the US, presumably arising from the profitable sale of goods and services with no mention of unusual tax breaks.
The earlier policies, of promoting exports has led to growing our own multinationals, has worked. Is this an Irish example of of the Vernon-Johnson trade cycle being reversed from the usual pattern of Ireland “catching” US firms as they increase foreign sales in Europe, Middle East and Africa?
Perhaps this theory of trade cycles is not longer held to be a true representation of how firms become multinationals and the effects on small open economies.
If so, what contempoary theories apply to those businesses trying to sell in China, India, Brazil, Russia, Eastern Europe etc?
“The likes of Microsoft, Google, Intel and the pharmaceutical companies will carry your water for you. They have unlimited resources and much greater influence than Ireland does.”
This quote from Vargo just about says it all about Ireland.
CRH employs about 45,000 in North America compared with about 2,000 in Ireland.
It used to be an Irish company but almost 90% of its shares are held overseas.
It’s handy for propaganda purposes to make the case that Irish companies employ a big number in the US.
Is Accenture now an Irish company?
Ahem! I did suggest that the Obama move would bode well for Ireland!
But is America in greater need of friends than heretofore?
Read:
http://seekingalpha.com/instablog/420590-marli/8420-did-the-japanese-try-to-dump-135-billion-in-us-bonds-on-the-black-market
Verrrrrry interesting ……….. !!!!!!!!
What black market? Private to private? Preparatory to a public sale to avoid blowback, as our cousins say!
AIG is also suing Mr H Greenberg, customer of the IFSC…..
And …. still they come!
http://www.irishtimes.com/newspaper/breaking/2009/0624/breaking9.htm
James Hardie is not the best behaved corporate citizen: you have been warned! Asbestos, funny compensation funds etc.
@Pat: I read that this morning. I have been using JH as an example of headquarters relocation for a few years now after they relocated from Australia to the Netherlands because of the Dutch tax treaty network. Looks like I can keep using them! What I find interesting about their comments is that they are highlighting the stability of the Irish tax system. This is something I’ve had intimated to me by others. Compared to many other countries, the Irish tax authority does not change their approach very often. This stability — tax certainty is the phrase the legal literature prefers — is a big attraction. With that in mind, whatever the US or other countries might do, it may serve us well to keep a steady hand on the tiller than trying to steer around every wave.