DUBLIN: A senior economic advisor to Donald Trump has conceded Ireland will retain its corporate tax advantage over the US even if Congress passes cuts outlined by the president-elect.
The new US policy aimed at repatriating multinationals could be in place within the first 100 days of the Trump administration, according Stephen Moore.
However, in an interview on Friday, he said the US was more concerned about companies leaving for countries like China and Mexico and the knock-on effect this has on domestic manufacturing jobs.
Speaking on Newstalk, Mr Moore said while Mr Trump’s intention is to reduce the corporate rate to 15 per cent, this would have to go through Congress whose plan is for 20 per cent.
Ultimately, any agreed upon rate would likely fall somewhere between 15 and 20 per cent, he said. Ireland’s corporate tax rate is 12.5 per cent.
The tax cut could be passed within the first 100 to 150 days of Mr Trump’s administration.
“Ireland will still be lower than the United States so you will still have a competitive advantage over the United States but the advantage will be much lower than it is currently,” Mr Moore said.
“If we make this change, instead of being significantly higher, you would be slightly higher. I think mostly the effect of our business tax reduction will be to keep companies home.”
The incoming administration view the policy move as a much needed economic stimulus and is aimed at delivering on Mr Trump’s promises of bringing jobs back to the US, particular in neglected areas like the so-called Rust Belt.
“This is going to be one of [Mr Trump’s] highest priorities. It’s very difficult to get laws passed in America but this is a new administration, he has a mandate to do this from the voters,” Mr Moore said.
