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PLANS FROM PRESIDENT-ELECT Donald Trump to introduce “a very large border tax” and make the US a more attractive place to do business are among the major risks facing Ireland in 2017.
That’s according to Goodbody analysts, who said that changes to US tax policy could affect the flow of foreign direct investment into Ireland and even tempt American companies with existing operations abroad to bring jobs back across the Atlantic.
At the first press conference Trump has held since he won the US presidential election, he warned this week he is going to target companies that have shifted jobs away from America.
“You want to move your plant, and you think, as an example, you’re going to build that plant in Mexico, and you’re going to make your air conditioners or your cars, or whatever you’re making, and you’re going to sell them through what will be a very, very strong border. You’re going to pay a very large border tax,” he said.
Trump has previously stated he will introduce a penalty tax on big US corporations that have moved manufacturing plants out of America. The tax could be as high as 35% on products shipped back to the US market.
Last September, Trump also announced a tax reform plan that could see corporation tax in the US drop from 35% to 15%. Ireland’s current tax rate for corporations is 12.5%.
The move to introduce such a tax could significantly weaken the IDA’s hand when trying to tempt US firms to move to these shores in the future.
Around 70% of the 200,000 of the current IDA supported jobs are in US companies. Additionally, more than one-tenth of the revenue generated by the Irish government comes from corporation tax paid by businesses – a high proportion of which is paid by US firms in Ireland.
Influential pharma
During his presidential campaign, Trump said he was going to encourage car manufacturers, many of which have moved a lot their operations out of America over the past few decades, to shift manufacturing facilities back to the US.
At Wednesday’s media briefing, he highlighted the pharma industry as his next big focus because it is “getting away with murder”.
Several multinational drug and medical equipment developers have moved to Ireland and used a technique called corporate ‘inversion’ to benefit from lower tax rates on their profits. Many US pharma companies also have significant manufacturing centres to the Republic.
“We have to get our drug industry coming back. Our drug industry has been disastrous. They supply our drugs but they don’t make them here to a large extent,” Trump said.
“The other thing we have to do is create new bidding procedures for the drug industry because they are getting away with murder. Pharma has a lot of lobbyists and a lot of power and there is very little bidding on drugs.
“We’re the largest buyer of drugs in the world and yet we don’t bid properly and we’re going to save billions of dollars over a period of time.”
According to the IDA, roughly 50,000 people in Ireland are employed by pharma firms.
Written by Killian Woods and posted on Fora.ie
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What they’re saying is nobody will help you with your mortgage but if you had a heap of loans we will restructure them and stretch out the payments to 5 years or something. A little relief for the person making the payments but it means more interest to the banks. Who are they helping exactly?
There is a legal way of dispatching this debt.
You decide what you can pay back monthly
Inform the debtor of your intention to pay and your committed monthly payment.
Attach your cheque and write official offer on the rear of the letter diagonally
You know have a new legal contract
But you must legally maintain your offer
Every month
Do not make it a stupid amount but what u can afford
More info on you tube
Vaguely true insofar as if you do this a judge will be very reluctant to give any judgement to enforce the original contract. The diagonal writing though?
Dangerous, misleading rubbish.
Please explain why Will.
Happy to oblige, Ryan. Mik’s advice, if followed, will have absolutely no legal effect on one’s obligations and liabilities, and most certainly will not result in “a new legal contract”. Such unilateral action is far more likely to result in services being withdrawn/cut off and debt collection proceedings. Short of bankruptcy, debt restructuring is only possible with the agreement of one’s creditors. Following Mik’s advice is the path to ruin. Negotiate with your creditors, because you can’t dictate to them.
That doesn’t rhyme, Mik
@Mik
Hi Mik
Did you read the book by a man called Darrell O’Dea who challenged the banks on his mortgage and won?
I read it there a few weeks ago. It was poorly written, kind of rush job, but to be fair to the man he pretty much documented his whole experience in great detail.
There’s a great section in the book where he calls out bank of ireland on their fake debt collector and also how he handled extremely aggressive phone calls from bank of ireland’s solictors.
It would give hope to the people who think they have no hope. I’m not yet in that situation, but if my choices were this or repossesion and being chucked out on to the street I would definitely go down the road of challenging the bank. Kenny
@Kenny: my comments above on Mik’s guff are just as applicable to that “book” you mention. Even more so, in fact.
@Will
I also read ‘that book’ and it would be guff only the guy lawfully discharged his mortgage and there’s no police or solicitors chasing after him. He’s living in his house mortgage free at the present. Did you actually read the book or just spewing know it all nonsence?
Exactly kenny it’s a way of keeping your roof over your head but u still owe your debt just extending it over a much longer time
Any roof is better than no roof .
Who do u work for will viper debt collectors lol
@Michael – if you believe that, I have some magic beans to sell you…
@Mik – Any chance you could engage with the substance of my post, rather making daft personal digs?
New initiative but no details…. Wow bet loads of people are feeling the relief on the back of this
We were told the same last year and the year before nothing ever gets done.easy to know noone in the dail needs a mortgage or they would be free with every pint in the dail bar
Wow look what they discovered a child in the street knew that particularly a hungry one I suppose they will give themselves a rise now
Commas and full stops are your free. Use them.
Correction fail.
Damn autocorrect.
Paul,step away from the shovel.
Last time I checked auto correct won’t add in words
More Lies form the Irish Banking Federation!
5 years on nothing done for the victims of corrupt/criminal bankers.
The Irish Banking Federation, A Private Members only club for Snout Nosed Champagne Quaffing Schiesters.
You Bust the country you should be in jail!!
Not pretending to assist your victims!!
Do not pay! Everything should be free – free houses, free electricity, free gas, free health, free cars, free road tax, free insurance, free fuel. Print more money and we will all be rich.
Sarcasm?
If everything was free,they’d be no need to print money.:-)
Good point Norman. And with the money we saved on not printing money we could have even more free stuff.
You wouldn’t save anything since as you suggested everything is free.But i degress read the article,nowhere does it state debtors will or should walk away from their debts.
Exactly the way it is for all our TDs
Oh wait they get a massive salary and 5m worth of a pension too after 4 years
What’s good for the goose
Just like ireland and the the ecb , there’s gonna be no debt write down just stretching it out
Restructuring means still having to pay. .It is basically kicking the can down the road.
Yes and that’s the way it should be. Do you want a something for free and get to keep it at a reduced price? Would you offer any free profit of your house if it continued into profit? Would you give back 200,000 to the tax payer if your house was worth more? No you would not! You would probably re mortgage buy a few buy to let apartments and get a couple of new cars and holidays and live it up like a king and treat your tenants like 2nd class citizens caus they wee not clever enough to buy obnoxiously over priced houses in a little dreary island . But when it’s the other way around its everyone else’s fault and I want my Nama and don’t want all the debt anymore !!! Not saying everyone is like this but plenty are.
Why should someone get to keep an asset they cannot pay for? Makes no sense to someone who can’t even get on the property ladder despite paying 1250/mth rent for last 3 years. Sell up and give the rest of us a chance
Why are there no houses for sale at the moment?Are you confusing asset with a “family home”?
Problem is Sean, the assets are worth a fraction of what they originally where. The majority of borrowers entered contracts in good faith! Banks, builders and estate agents were supposed to be the professionals. The banks were complicit in a lot of bad borrowing yet they get bailed out? and poor auld Joe Soap has to pay the penalty on his own? The government and banking community will continue to divide and conquer unless somebody, everybody stands up and objects!
What else do u want, hard working people who wanted a family, who have found themselves in a difficult situation to be kicked out in the streets, then claim full rent allowance because we’ll have to put them somewhere, then say I don’t know 4-8 years come up and they get the council house which is bought for them by the council €€€. Do u see the dept of your statement. Kicking people out only furthers the problem and quite possibly cost the state much more.
You are right Paul ‘ the excitement of the news got to me
Sorry to be selfish here… But…. What benefits, rewards or incentives will we get for not taking out loans we couldn’t afford just to “get on the property ladder”?
“Peace of mind” unlike the unlucky ones who did.
Fair enough… As long as my taxes doesn’t have to take up the slack!
Sadly you don’t get to decide where your tax goes and never will.
They don’t they take it up for the banks and now will till you and your next 5-6 generations pay for it
While this measure is welcome I wonder how it will work. The banks that have signed up are AIB, BOI,UB, PTSB and KBC. This measure might work if the person needing help has all their liabilities with those banks. In practice I suspect that people have loans (outside of system) as well as a Significant credit card providor MBNA. Additionally, they are saying that the mortgage has to be up to date. Given the way short term creditors Chase their debt they are more likely to be up to date at the expense of the mortgage.
I have a couple of friends who renegotiated with their bank on their mortgages. They made a new deal to pay what they could now that they had been laid off and literally didn’t have the cash any more.
At last a realisation by the banks that people can only pay what they can pay, during a recession
getting unsecured debt paid back was always going to be a damage limitation exercise
Trouble with these debt write-down schemes is that Brendan Kelly-type landlords with 20 plus properties will be in the same queue as folk with only one property.
If a family can’t afford to pay rent, then they have to leave and find something that they can afford. Don’t see why mortgage holders have to be treated like they are special.
That would be fair if there was not a fundamentally dysfunctional and abusive property market. Thankfully I am not a victim but so many people were so badly scammed.
Principal private residences deserve protection. Buy to lets are different.
The IBF has been disingenuous, false and irresponsible in its statements. Do not trust the IBF.
The IBF lavishly entertained the CBI upper echelons and kept the banking regulator sweet. Light touch regulation became collaboration. Wearing the green jersey was the code for back scratching.
Sadly my comment will likely soon be removed. Speaking truth to power is unacceptable in Ireland.
The covered institutions are grossly insolvent if real and actual mortgage impairments were to be fully provisioned. Look at the quarterly reports on mortgage impairments given to the CBI. Unreal.
The IBF is inimical to the public interest.
@ Will
U clearly work for a bank or a debt collection agency or many a solicitor
I never said it dispatched your debt
It’s an old law if I acted upon in a very precise and correct manner
Would restructure your payment to a manageable amount which paid once would have to be paid each and every month till your original debt was dispatched
One missed payment at the new amount wound render your offer null and void
It’s a sticking plaster not a con
To enable people time to educate themselves
About how their bank operates
It’s a last resort situation
But will keep people in their homes with some breathing space
From the wolves that will sell it for a few magic beans and still hang the debt over your head
Mik, the only thing that’s clear here is that you’re definitely not a solicitor, inventing “old laws” and posting misleading rubbish. You would remain bound by the terms of your original credit agreement no matter what you write diagonally.
have your say