“if you do that you are going to see a flood of companies leaving Ireland and Canada and Germany and France and they are going to come back to the United States…”

Here’s something for Taoiseach Enda Kenny, and any one else, to keep in mind when they hear that US President-elect Donald Trump “understands Ireland very well.  He was complimentary about the decisions made about the economy here.”  The Belfast Telegraph reports comments by Stephen Moore, a “senior economic advisor to Mr Trump”, on BBC Radio 4’s World at One today.

From the Belfast Telegraph report

[Stephen] Moore, senior economic advisor to Mr Trump, said the centrepiece plan of the new Washington administration was wooing back multinationals with radical business tax cuts.

“I believe that when we cut these tax rates – we’re going to cut our business tax rate from roughly 35% down to roughly 15 to 20% – if you do that you are going to see a flood of companies leaving Ireland and Canada and Germany and France and they are going to come back to the United States,” he said.

“It is going to have a very high impact on jobs.”

Mr Moore, formerly a chief economist with US conservative think-tank the Heritage Foundation, said the effort to entice companies back from low corporate tax-rate countries would be central to boosting the US economy.

This was the “single most important thing for our country right now”, he told BBC Radio 4’s World At One.

“There is no question about it, and we see day after day in this country that we are losing our businesses and our corporations,” he said.

“They are effectively renouncing their US citizenship and they are moving to Canada, to Britain, to Ireland, to China and Mexico.

“That is a significant loss of jobs and we want to have the jobs here in the United States, we don’t want to have them go abroad.”

That should give everyone something to talk about on St Patrick’s Day…

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  • On the fence!

    …………………and you have to say, why shouldn’t they?

  • GEF

    Whats going to happen to this trade deal between Canada, Mexico & the US?
    https://ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta

  • Kevin Breslin

    And the UK too I would imagine. That’s the nature of capitalism. That lower corporation tax cut added to inheritance cuts are simply going to reduce quality of state provisions.

    Those people leaving the USA almost as refugees from Trumpomania may be useful additions to what our countries in what Clarkson calls “The Civilized World” have to offer.

  • Katyusha

    Really, now.

    Firstly, corporate taxes in Germany and France are roughly comparable with those in the US: In France around 33%, in Germany around 30% lumping together corporation tax and trade tax. These are not tax havens and if a company chooses to establish itself in Germany or France there will be some other reason behind it; access to the European market, workers with specialised skillsets, buying the assets of a European company, whatever. If they set up in China it’s low labour costs and access to the Chinese market; in Mexico, low labour costs and access to the US market. Secondly, if they cut corporate tax rates so heavily, with around $15 trillion in national debt, how are they going to pay for Trumps’s new infrastructure spending package?

    Ireland’s low corporate tax rate provides a multitude of multinational companies paying collectively a massive amount of tax from Ireland’s point of view, and very little tax on massive profits from their point of view. What it doesn’t provide is mass employment, so it’s difficult to see how such a strategy is going to woo jobs back to the States. If Trump really wanted to hurt Ireland, a punitive tariff on exports from Ireland to the USA would be the way to do it. As Ireland is a member of a trading bloc, this might have to be applied to all EU imports. I imagine this would mean TTIP going to the wall, as an added bonus.

    If this is the centerpiece policy that Trump’s economic advisers have up their sleeve, we have nothing to fear.

  • Declan Doyle

    Very few multinatuonals here in Ireland pay the full amount corpo tax rate. In fact the actual percentage is around 5%. If Trump can top that tgen good luck to him.

  • Adam Martin

    I believe the average CT rate paid in France is actually around 7 or 8%.

  • Megatron

    These all global companies. They set up in EU because they want to sell to the EU.

    The irony is that if they are to be solely located in US they need trade deals to operate in other countries.

    Apparently Trump doesn’t want one of those either though. Like everything beyond his racism, this policy is not thought through at all.

  • Karl

    He wants to cut taxes and increase spending without increasing US debt. Hes a businessman who wants to create jobs by bringing about protectionism and reducing international trade. It doesnt work like that in mature economies as countries start to concentrate on areas of competitive advantage, thats where the growth is but international trade is needed to sustain it.
    His own companies are not averse to outsourcing and using cheap labour.
    Now thats hes in, someone will have a word in his ear and tell him to set out his stall with non contradictory priorities. If not the markets will react badly and even Donald understands that business doesnt like uncertainty and he needs to be seen to bring stability.
    All politicians make sweeping promises to get elected. His were madder than most, because he didnt expect to get elected. But now that he’s a politician you can expect the same delivery rate from him as from the rest of them.

  • BonaparteOCoonassa

    According to Trump, TTIP is going to the wall anyway. Good.

  • Skibo

    You missed the point. Trump is not out to hurt Ireland. He sees US companies setting up in other countries thinking that is taking jobs away from his home market. Problem is, he does not understand the reason behind the peripheral arms. they give access to the EU market, a highly educated work force, no problems with language and a low tax rate.
    Maybe he is “setting up” countries and companies to blame when he cannot produce the jobs he promised.

  • John Collins

    Adam
    It might well be less than that. When the France challenged Ireland about CT Rate. Irish tax experts are said to have studied the overall French tax take in this area and it proved to be less than the overall Irish Rate,which some say is a little over 4 per cent.

  • Old Mortality

    If you’re right about the 5%, then expect the rest of the EU to put a stop to it post-Brexit. You surely don’t believe that the Irish are just fretting about Brexit’s effect on ‘the peace process’.

  • John Collins

    They may not hurry to put a stop to it at all as other EU countries like France have at least as low a Ct
    T Rate in real terms.

  • mickfealty

    You endorsing low Irish corporation taxes Declan? Or have you shifted position?

  • Declan Doyle

    I dont know what you mean by position?

    In relation to low corpo tax; no I dont endorse it at all. Just pointing out the present reality as it is in the South.

  • Reader

    Declan Doyle: In relation to low corpo tax; no I dont endorse it at all.
    Maybe Trump should do a deal with SF? He wants high corporation taxes in Ireland; SF wants high corporation taxes in Ireland. They are on the same side.

  • Sir Rantsalot

    You don’t need trade deals to operate in a country. You might have heard this one or two or two million times over the last few months !

  • Reader

    Kevin Breslin: Those people leaving the USA almost as refugees from Trumpomania may be useful…
    Here you go:
    http://davidthompson.typepad.com/davidthompson/2016/11/the-lamentations-of-the-women.html
    …start recruiting

  • Declan Doyle

    SF do not want any change to the Corpo tax in Ireland. So you’re off the line there anyway.

  • Kevin Breslin

    The United States better than any was a great example of people fleeing petty nationalism and religious persecutors. If the circle becomes complete and Americans come to Europe I’m sure they’ll be highly welcomed in the likes of Ireland, Germany, France etc. where the realization that skills and hard work are what create jobs, not telling poor people to go chase migrants with a pitchfork or something of that nature.

  • Reader

    Kevin Breslin: If the circle becomes complete and Americans come to Europe I’m sure they’ll be highly welcomed in the likes of Ireland, Germany, France etc. where the realization that skills and hard work are what create jobs…
    You mean Mexicans, rather than Americans, don’t you? I doubt that Trump’s persecution is going to affect US citizens badly in comparison with its effects on millions of Mexicans in the USA.
    The EU will open its doors wide, will it?

  • Kevin Breslin

    Mexico will probably get the highest numbers of American refugees, then Canada, there will still be a few left for Europe. Swapping engineers, business people and artists and musicians for the likes of Farage and Hopkins will be great.

    It’ll make Europe great again!

    https://www.chaser.com.au/2016/mexico-border-swamped-american-immigrants/

  • Reader

    In the case of Mexico, the word you are looking for is ‘deportees’, rather than ‘refugees’. Since these are millions of people who don’t want to be in Mexico, and aren’t allowed in the USA, they can reasonably be expected to look elsewhere.
    As for other Trump refugees, it’s a bit early to tell. Americans are famously reluctant to leave the USA, and the exodus heralded in hysterical tweets over the last week is not actually very likely to happen. The spoof article you linked has as its subtext: don’t be ridiculous, this won’t happen.

  • Kevin Breslin

    Actually that really wasn’t a spoof, there’s a strong degree of truth and honesty in it.

    México is the Number 1 destination for American refugees … It’s already Great, and one day Britain and America can be just as Great.

    https://uploads.disquscdn.com/images/cf0a0235400e75359a7e868f4c3ee1acfa585ab74ab4189a184cb3af2f1ad9e0.png

  • Reader

    The weather is nice in Mexico, and it’s a cheap place to live. But I don’t think that Mexico is attracting the sort of Americans you want:
    http://www.washingtonpost.com/news/worldviews/wp/2014/11/21/mexico-has-its-own-immigration-problem-american-retirees/
    Spain attracts British and Irish retirees in the same way.

  • Kevin Breslin

    Absolutely, These American refugees are leaving because they realize Mexico is Great. Many Old people are wise and experienced so they know what is Great too. Availing of Mexico’s lower cost of living shows their intelligence is also Great. Ireland’s oldest president was born in America … experience and have a degree of economic sense.
    It’s all Great.

    Let’s make Inishturk Great too!

    http://www.irishcentral.com/news/politics/remote-irish-island-seeks-americans-fleeing-donald-trump-presidency