US: Higher corporation tax would be 'deal breaker'

The head of the American Chamber of Commerce in Ireland has said a higher corporation tax rate would be a "deal breaker" for new international investment.

Lionel Alexander is Vice President and Managing Director of Hewlett Packard in this country.

It follows comments from European officials that nothing should be ruled out of the changes needed to get our finances back on track.

The government has reiterated its commitment to keeping the rate low and Mr Alexander has acknowledged it is a key anchor for their business, and others.

Mr Alexander said: "I think it would be a very, very negative signal to our corporate headquarters if we chose to move the wrong way with the corporate tax rate here in Ireland. I don't think it would be accepted.

"My hope is that we keep to the commitment of holding the rate at 12.5%. Significantly, for any new investments coming in, it would be a deal breaker."