Moody’s: Irish risk from US tax cut

The US will “likely” cut its corporate taxes, a development which would expose Ireland to increased fiscal risks given the many US multinationals which are based here, according to an economic update by Moody’s Investors Service.

In an overall favourable report, the credit ratings firm notes the Government’s corporate tax receipts are exposed to the decisions of a small number of multinationals.

“A degree of economic volatility requires larger financial and fiscal buffers to deal with negative shocks than would be needed for a more stable economy,” wrote report author Kathrin Muehlbronner, the lead sovereign analyst for Ireland at Moody’s.