Trump victory should be catalyst for fresh look at Ireland’s market position and FDI strategy
2016 US Election
Commenting on the potential business impact of the US presidential election outcome, Brendan Jennings, Managing Partner, Deloitte said:
“The stated tax and trade positions of Donald Trump include a proposal to lower the US Federal Corporate tax rate from 35% to 15% and to pursue ‘An America – First’ trade policy. These could have a significant impact on our small open economy if carried through - tax will become less of a deciding factor for US multinationals when deciding on optimum locations. The potential impacts of these policies should now act as a catalyst to take a fresh look at Ireland’s market position and FDI strategy to ensure they will continue to work well for us in the changed US political landscape.
“Ireland made a bold move in 1996 to move to a 12.5% tax rate on a graduated basis by 2003. Is now the time to look at the next bold move? Another option that must now be looked at is seeking a more flexible application of EU fiscal rules which currently limit capital investment in infrastructure. We must also focus on non-tax factors such as political and economic stability, our regulatory regime, labour availability, operating costs and market access in order to retain our FDI companies.
“Today’s result, similar to the UK referendum on Brexit in the summer, reinforces the extent external developments can have on our open economy. This highlights the need for us to ensure a better balance in our economy, and so, Ireland must redouble its efforts to support the re-emerging indigenous sector over the medium term to help achieve this.”
Notes to Editors
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