Ireland on alert as Trump pulls US out of global tax deal
Ireland on alert as Trump pulls US out of global tax deal
Move sets up potential stand-off on tax between US and EU
Summary
Donald Trump signed an executive order withdrawing the U.S. from the OECD global corporate tax deal, which set a 15% minimum tax rate on multinationals.
This move threatens Ireland, which relies heavily on corporate tax revenue from U.S. firms.
Trump also plans to retaliate against countries imposing "extraterritorial" taxes on U.S. businesses.
EU officials, including Ireland, expressed concern but emphasized their commitment to the tax reforms.
The decision risks escalating U.S.-EU tensions, with fears of trade tariffs and broader economic fallout.
This is probably the worst thing Trump has done so far. This 15% minimum tax deal was way too little, but still one of the best things that happened in the last few years. Now we are back in a race to the bottom. Only the rich will win.
Only the rich will win.
Should have been his campaign slogan.
Companies are going to be challenged to reincorporate their remote offices as independent (taxable) subsidiaries lest they find themselves unable to obtain a license at all.
So ireland should go back to the old days and slash it's rate in response?
Thats probably what he’s hoping will happen so all his rich friends can once again act like they live there so that’s where their minuscule tax payments will go.
Legally Ireland can do that but the commitment to the 15% is there... Will be very interesting to see what happens now.
As an irish resident, I'll keep the jolly rodger flag on standby, incase the tricolour needs to come down for a couple of years 😂
I'm not sure whether I understand this. By DT signing the withdrawal, US companies now will be able to have a lower tax rate than 15% in Ireland? Or that by signing it, the companies will push for a lower rate and threat with leaving if the country doesn't comply?
I think it positions the US to lower its corporate tax rate below 15%, enticing tech companies to move their official HQs back to the US from Ireland. Of course this would likely result in a race to the bottom on corporate tax rates globally, which the agreement was meant to protect against so companies had to pay their fair share of wealth back to society.
Thanks, that makes sense.
Second one