Donald Trump has accused Ireland of stealing the US pharmaceutical industry and the tax revenue that should have been paid to the US treasury, in a blow to the Irish premier, Micheál Martin, who had hoped to emerge unscathed from a visit to the White House marking St Patrick’s Day.
The US president showed grudging respect for Martin, alternately ribbing and complimenting him, while also launching several broadsides against the EU.
He repeatedly took aim at Ireland’s historical low-tax policies, which helped lure US multinationals including Pfizer, Boston Scientific and Eli Lilly to its shores.
Big pharma now drives Ireland’s €72bn (£60bn) worth of annual exports to the US, with taxes paid in Ireland on drugs consumed in the US.
First time Trump has actually taken aim at something worthwhile. Ireland’s antagonistically low corporate tax rate and dodgy tax writeoffs for multinationals robs other countries of taxation used for public services so that Ireland gets just a little more for themselves, it’s a selfish, crappy move by Ireland and I’ve spoken out against it multiple times in the past.
I don’t think Trump will get it right though. He’ll probably realise sooner or later that his company has an Irish subsidiary for tax reasons.
Ireland is luring the EU subsidiaries of those companies to Ireland by being, in comparison to other EU countries, a tax haven. Luxembourg does something similar, that’s where e.g. Amazon is.
Without those policies US companies would still have EU subsidiaries as you need to have one to operate in the EU. And a lot more money would stay in the EU, instead of flowing to the US. In short: Trump is complaining that Ireland, to the benefit of US companies, is a traitor to the EU’s tax offices.
How do you know taxation is used for public services? In my country it ends up in rich peoples pockets.
Strong government/democracy, fairly low corruption rate. Has come a long way since the 80s and before.