Belfast Telegraph

Tax cuts set to make US 'competitive'

By Colm Kelpie

US tax reform will make the country a more attractive destination for business, the head of the Republic's inward investment agency (IDA) has warned.

Martin Shanahan of the IDA said US authorities will be hoping firms will now decide to stay in America, rather than invest in Ireland or Europe.

But he said he doesn't see a significant impact on Ireland.

In addition to cutting the US corporate income tax rate to 21% from 35%, the new debt-financed legislation gives other business owners a new 20% deduction on business income and reshapes how the government taxes multinational corporations along the lines the US's largest businesses have recommended for years.

"Let's be honest. This is an effort to make the United States more competitive. It will make the US more competitive," Mr Shanahan said.

Belfast Telegraph

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