US lobby group fires warning over FDI levels

US lobby group fires warning over FDI levels

The representative organisation for US companies invested in Ireland has attacked the Government's reluctance to lower personal tax rate levels, coinciding with Finance Minister Paschal Donohoe ruling out reductions in next month's budget.

In its pre-budget submission, the American Chamber of Commerce Ireland said a competitive personal tax regime is vital "as a means to retain and attract FDI [foreign direct investment]".

The Chamber said that Ireland's personal tax rate is among the highest among FDI competitor countries, when the higher marginal income tax rate of 52% is combined with PAYE/PRSI and USC - and is "uncompetitive for a traded economy reliant on a highly mobile labour market within Europe".

"While there is acute awareness of the Brexit threat, we view FDI - and US FDI, in particular - as a potential buffer for the Irish economy, which needs to be protected and nurtured," said Chamber president Mark Gantly.

"It is important for Ireland to recognise and act upon the opportunity that Brexit presents for FDI in Ireland. We have a unique offering and we must not lose sight of this among all of the Brexit uncertainty," he said.

The American Chamber also called for an acceleration of the Government's Project Ireland 2040 infrastructural improvements programme, saying a resolution of the country's infrastructure bottlenecks - including housing, roads and broadband - is "extremely urgent" if Ireland is to maintain its status as a 'go to' country for FDI.

More on this topic

Fine Gael propose greater scrutiny for opposition's spending pledgesFine Gael propose greater scrutiny for opposition's spending pledges

Universities funding warning amid rising student numbersUniversities funding warning amid rising student numbers

Donohoe warns of contained health spending under no-deal Brexit outcomeDonohoe warns of contained health spending under no-deal Brexit outcome

'What the government is proposing is wrong' - FF say welfare increases in budget shouldn't be ruled out'What the government is proposing is wrong' - FF say welfare increases in budget shouldn't be ruled out

More in this Section

M&S chief financial officer quits role as firm slides out of FTSE 100M&S chief financial officer quits role as firm slides out of FTSE 100

UK government urged to prevent Thomas Cook collapseUK government urged to prevent Thomas Cook collapse

Facebook suspends ‘tens of thousands’ of appsFacebook suspends ‘tens of thousands’ of apps

Walmart to stop selling e-cigarettes at its US storesWalmart to stop selling e-cigarettes at its US stores


Lifestyle

For an instant supper or lunch, fishcakes can be nourishing, warming and tasty. To complete a balanced meal, all it takes is some stirfried or roasted root vegetables.Taste of the sea: Top 8 fish cakes

My seven-year-old stood tall, whispered “bravery” to herself and stepped into the pitch-black dungeon. I stood there and watched her disappear.Learner Dad: I hate nostalgia, I think it’s mawkish and sentimental

Dr Phil Kieran says head lice is incredibly common among school children and offers practical advice on how to remove the crawlers with easy treatments.Tackling head lice: Easy treatments to remove itchy creepers

Gráinne Healy only started running regularly a few years ago. She’s already completed 50 parkruns. She tells Rowena Walsh what motivates her.Ageing with Attitude: Parkruns and quiet Friday nights

More From The Irish Examiner