DONALD Trump’s Secretary of Commerce Howard Lutnick has described Ireland as his favourite “tax scam” as he took aim at our tech and pharma industries.
The latest warning from the US comes amid further concerns that Trump’s tariff and tax policies could hit Ireland’s economy hard.
Secretary of Commerce Howard Lutnick has repeatedly targeted Ireland’s budget surpluses in comments[/caption]
The American president is due to confirm his package at the start of next month[/caption]
The US President’s economic advisor Howard Lutnick this weekend claimed that Ireland has taken the intellectual property rights of America’s “great tech companies and great pharma companies.”
Speaking on a podcast in the States, the Secretary claimed big companies had put their IP rights in Ireland due to our low tax rate which results in them paying taxes here instead of the States.
He said: “We’re going to try and fix a whole bunch of these tax scams. Ireland is my favourite.”
During the interview, the US Commerce Secretary wrongly claimed that Ireland recorded a €55billion budget surplus last year.
Ireland actually recorded a €25billion surplus but this includes a €14 billion once off payment from the Apple tax case.
He said: “All our great tech companies and great pharma companies. They all put it there because it’s low tax and they don’t pay us. They pay them. So that’s got to end.”
Tanaiste Simon Harris responded to the comments from President Trump’s commerce secretary as the Fine Gael leader claimed there is a two way economic relationship between the States and Ireland.
He said: “Ireland deeply values its economic partnership with the US and the economic relationship between the EU and the US.
“It is very much a two-way relationship that has strengthened over each generation and one that is based on mutual respect and one that creates significant jobs and investment in both Ireland, the US and the EU.”
Howard Lutnick has repeatedly targeted Ireland’s budget surpluses in comments about changing the US tax and tariff policies in recent months.
Earlier this week, research from the ERSI warned that the impact of a tariff war between the US and EU could cost Ireland billions of euros over the next five years.
Despite this, Finance Minister Paschal Donohoe has warned that his government will not return to cost of living supports in next year’s budget even if inflation rises again.
NO BUDGE
He said: “The cost of living is still high.
“I know it’s a huge challenge for so many, but we don’t have the inflation levels – the five per cent and 10 per cent – that we had for so many years that necessitated spending billions of euro to help offset prices going up.
“And it is correct, therefore, to say at this point in time that we can’t repeat those kind of measures again and we will need to make sure that we have the enhanced strength in our economy and in our public finances to deal with the kind of risks that we’re outlining today.”
Public Expenditure Minister Jack Chambers has already warned that €250 energy credits will be cut, while Taoiseach Micheal Martin last month moved to dampen hopes of a cost-of-living package.
And Minister Donohoe said it “could well be the case“ that certain Irish sectors will see job losses if a tit-for-tat transatlantic trade war hammers the economy for billions.
Last year’s Budget package included two double Child Benefit payments handed out before Christmas, €400 extra for carers, €300 for those on Fuel Allowance and an additional October cost of living double payment as well as the usual social welfare Christmas bonus.
Certain spending measures look likely to remain in place, but households will no longer be given energy credits to help with their electricity bills.
Officials from the Department of Public Expenditure recently warned Public Expenditure Minister Jack Chambers that electricity prices will rise over the next five years due to the need to invest €20billion in Ireland’s energy grid.
The Department said our electricity grid needs serious investment to cope with the growing number of homes, power hungry data centres and to receive energy from new wind farms.
They warned that this €20billion bill will likely see electricity prices for households grow over the coming five years but urged the Minister not to use energy credits to combat this due to the cost to the State.
