Trump corporate tax plan could hurt future US investment in Ireland
However, there is a silver lining as border tax looks like it’s on the back-burner
US national economic director Gary Cohn and treasury secretary Steven Mnuchin unveil the Trump administration’s tax reform proposal in the White House on Wednesday. Photograph: Carlos Barria/Reuters
The tax plan put forward by US treasury secretary Steve Mnuchin will, if enacted, mean one significant change. It will remove the current incentive for US companies to establish subsidiaries overseas which results in a reduction in their overall corporate tax bill.
Tax experts believe that this could mean fewer US companies setting up foreign bases in lower tax locations in future – and thus a slowing in the flow of foreign direct investment (FDI) to countries such as Ireland.