Joe Biden: Expert slams US President over tax rate proposal
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Economist and fellow at think tank Centre for Brexit Policy Catherine Mcbride took aim at US President Joe Biden for a U-turn on Irish support. During an interview with Express.co.uk, Ms Mcbride insisted the US President has long said he backs Ireland in their Brexit debate with Northern Ireland and the rest of the UK. However, she said, while doing this he has been proposing an international corporate tax for US businesses which would result in the destruction of the Irish economy.
Due to many companies residing in Ireland, a new set minimum level of corporation tax on US companies abroad would massively negatively the Republic of Ireland.
Ms Mcbride said: “The funny thing of course about Ireland and the US is that Joe Biden is proposing there will be a minimum US tax rate of overseas corporate earnings of 21 percent.
“His treasury secretary Janet Yellen has also proposed a minimum global rate of corporation tax at the same level.
“Germany’s finance minister has quickly supported this plan, not surprisingly.
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“But this plan would completely wipe out the Republic of Ireland’s economy in one pen stroke.
“Ireland’s corporation tax is only 12.5 percent, an enormous part of its tax revenue comes from foreign companies many of which are US foreign companies.”
The economist insisted the Irish people needed to think about whether Joe Biden has the nation’s greatest interest as an ally going forward.
“So it is sort of incredible because here is Joe Biden talking a great game about we must keep the peace in Ireland.
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“But also going here is a piece of legislation that will wipe out the Republic of Ireland.
“This is something the Irish might have to think about.
“But the Germans and certainly French would love such a thing.”
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President Biden’s tax reforms could result in a boost to the UK economy, however.
Under Mr Biden’s plans for a global minimum corporation tax rate, countries would also be given taxation rights over profits made by US tech giants.
Coupled with Mr Biden’s low rate corporation tax, it is thought the UK could see up to a 21 percent rise in profit to the exchequer.
According to analysis from Tax Justice UK, this could benefit the UK to the sum of approximately £13.5billion a year, or if scaled to 15 percent, £8.2billion.
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