America’s Ambassador to Ireland has warned the Dublin government against any increase in the corporation tax rate as it may force US companies out of Ireland.
Dan Rooney made his comments as pressure mounts from France and Germany for a common corporate tax rate across Europe.
Rooney was speaking in Mullingar at the last of the open forums he has held all across the country in the wake of his appointment to the role by President Obama in 2009.
The French and Germans want a common tax policy before the end of 2012 but Rooney is adamant that Ireland must maintain its current 12.5 per cent rate to protect American investment.
“If the corporate tax is raised, then American companies will look at the situation and say, ‘Well it is too high for us,’” said Rooney
“Ireland needs to continue with its current rate of corporate tax and realize that it is in competition with other economies.”
Rooney went on to name Poland as a real competitor to Ireland in the foreign investment stakes.
Pointing out that EU pressure was challenging the Irish government on the issue, Rooney acknowledged that Finance Minister Michael Noonan and his colleagues were actively fighting Europe.
He added: “The US Government is very interested in what is happening but from our point of view everybody has to pay their taxes.
“Ireland remains an attractive place to do business. The population is English speakers with a good attitude who are friendly and intelligent and do the job.
The Ambassador also acknowledged the threat to 750 jobs at the Bank of America’s MBNA credit card facility in Carrick-on-Shannon and described the situation there as ‘unfortunate’.
He also highlighted three major improvements in Ireland since he first landed at Shannon in the 1970s - the roads, mobile phone infrastructure and the food.
“You have great chefs here now,” joked Rooney.
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5 Comments
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Switch to the desktop site to post a comment.Pittsburghkid | Aug 20, 2011, 12:12 PM EDT
This is the same Dan Rooney, who plays in a statium bought by the citizens of Pittsburgh. The Steelers are worth $1 Billion, and I have to pay for their statium. Of course Rooney argued that the Steelers brought jobs to Pittsburgh. Would have low corporate tax rate bring jobs to Ireland? Ireland keep your corporate tax rate low, and attract business. Because business means employers, and employers mean jobs for Irish. Pittsburgh at one time was the job capital of the USA. We lost half of our population after the mills closed down. What is the difference between low taxes, and giving the Rooneys a statium.
bunkerisland | Aug 19, 2011, 10:44 AM EDT
Try to get it right please. You title the article that Rooney suggests don't cut the tax rate but the article indicates he suggests don't increase the tax rate. Now we know what any businessman would suggest, keep corporate taxes low, wages low and keep unions the hell out!
joycean | Aug 19, 2011, 10:43 AM EDT
Multinationals have taken jobs out of the US as well as Europe. Merck has announced it plans to layoff 13,000 in the US by 2015, while adding in places like S. Korea. Some suggest allowing these corporations to bring overseas profits back w/o taxes.
LoyalCitizen | Aug 19, 2011, 10:32 AM EDT
Is it really such a bad thing to let go over subsidised and under taxed pretentious American Corporations from Ireland. Firstly it save a huge amount of money and then traitorous Irish Politicians would be forced to invest in the Irish People and fill the gap. I vote we increase they corporation tax and try a different way of life, that pretentious American Corporations pay their own way and work with customers and not politicians.
butlerreport | Aug 19, 2011, 10:29 AM EDT
One has to hope that even the dumbest of the Irish politicians know that the ONLY REASON multinationals do business in Ireland is because of the 12.5% tax rate. We like to think that they're drawn to our Irishness, our education our command of the English language. They're not as recent pull-out to China and Poland has demonstrated.