###POV. Trump unveiled a tax plan for the...>

IRELAND: ###POV. Trump unveiled a tax plan for the US, which clearly has many

hurdles to overcome but the Irish economy would clearly suffer if the US ever

offered a 20% corporate tax rate. 

- So far this morning, there is surprisingly little reaction in Irish government

debt markets to this threat. Remember that a considerable amount of the Irish

economy/tax revenue is linked to its low 25% corporate tax rate for non-trading

income and a lower rate of 12.5% for trading income. In terms of direct

investment, the Irish Chamber of Commerce says that there are over 700 US

companies operating in Ireland. 

- Ryan McGrath at Cantors in Dublin maintains that "A 20% US corporation tax

rate would threaten a slowdown in the flow of future US Foreign Direct

Investment in Ireland. However, this is based on the assumption that 'tax' is

the sole reason for US FDI. Access to the single market should ensure that the

majority of the incumbent companies remain in Ireland."

- However, Irish debt should be more sensitive to the US tax plans that appears

to be the case now.