Obama’s tax move: Threat to jobs

IF President Barack Obama’s plan to target money made by US multinationals outside of America is successful then the move may have serious implications for our economy and tens of thousands of Irish jobs. 

That grim prospect is made remote though by the likelihood the Republican-controlled Congress will oppose the proposals.

Mr Obama announced a scheme on Saturday night that would impose a minimum tax of 19% on future overseas earnings and a 14% tax on profits accumulated by the firms outside the US.

Such a regime would, it seems, trump whatever blandishments we might be able to offer.

Washington believes that new cross-border corporate taxes could raise $565bn over 10 years. High stakes indeed.

The Irish view of this proposal is naturally coloured because of the huge contribution American companies make to our economy, but the reality is that multinational corporations are almost beyond the reach of the most powerful national government and the need for international tax harmonisation is more pressing that ever.