Former US treasury secretary Larry Summers said there has been “an excessive attraction” by US multinational companies to locate in Ireland to avail of a low corporate tax rate. The Harvard University economics professor was addressing an event hosted by Dublin think tank, the Institute of International and European Affairs, about the impact on the Irish economy on the Biden administration’s proposal for a global minimum corporate tax. RateUS treasury secretary Janet Yellen has suggested a 21 per cent base tax rate for large multinationals that could undermine the Government’s 12.5 per cent corporation tax rate, for years an economic bait used to attract foreign investment. “I suspect that will pose certain challenges for Ireland,” said Mr Summers in response to a question posed by The Irish Times. “Ireland should prosper on the basis of those strong structural advantages,” he said.

Source: The Irish Times May 12, 2021 17:26 UTC