Home > Ethics, Trends > America’s Turncoat Corporations: 600 in Ireland Avoid Taxes and Employ 100,000 Workers

America’s Turncoat Corporations: 600 in Ireland Avoid Taxes and Employ 100,000 Workers

March 28, 2011

ASHEHAM PRESS ALL RIGHTS RESERVED

America’s Turncoat Corporations – An Ongoing Series

I just finished watching a piece on CBS 60 Minutes about American corporations who have relocated in Ireland and Switzerland in order to pay less corporate taxes. This is a story that infuriates me. Large corporations who started their businesses here in this country have turned their back on their country, some giving up their citizen ship and moving to another country to avoid paying taxes – to avoid paying into our society, their country. I see all of them as traitors. Their loyalty is to the money they make and the shareholders, not to America, not to their fellow Americans. You want to know why there is no recovery going on in this country, look no further than the 600 corporations located in Ireland.

Here is the introduction on the 60 Minutes story — click here for more

Our government is in knots over ways to lower the federal budget deficit. Well, what if we told you we found a pot of money – over $60 billion a year – that could be used to help out?

That bundle is tax money not coming in to the IRS from American corporations. One major way they avoid paying the tax man is by parking their profits overseas. They’ll tell you they’re forced to do that because the corporate 35 percent tax rate is high in relation to other countries, and indeed it seems the tax code actually encourages companies to move their businesses out of the country.

Here is the story in Ireland:

Companies from the United States hare playing a key role in Ireland economic recovery.

Speaking at the American Chamber’s 50th Anniversary in Ireland, Henry McGarvey, Chairman of the American Chamber of Commerce North West Region and Managing Director of Pramerica Systems Ireland said “Today we have over 600 US companies employing 100,000 people in Ireland. A study published last week by Keith Walsh, an economist with the Revenue Commissioners points to the importance of this investment for Ireland’s economic recovery.

“His study found that in the past 10 years, US multinational companies contributed roughly one third of the corporation tax take. US companies also pay a significant proportion of revenues collected from VAT and Excise Duties while income tax revenue is generated from the 100,000 people employed by US companies here. These revenues generated for the Irish state by US Multinational companies is vitally important as the country seeks to rectify its current fiscal difficulties.”

During the first two months of 2011 800 new jobs have been announced in Mayo, Dublin, Galway, Kildare, Cork and Westmeath. McGarvey said “These jobs are very welcome news and build on the very successful year for foreign direct investment into Ireland in 2010 when IDA Ireland secured 126 new investments and 11,000 new jobs were created by IDA Ireland companies.”

Source: Irish Central

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  1. James Smitts
    March 28, 2011 at 11:46 am

    Hi,
    Your above post is ignoring several key facts in relation to US companies in Ireland.

    Firstly and most obviously, it moves both ways! There is 1,200 Irish business units that operate in the US and employ 82,000 people, and have invested $35 billion into the US.

    But aside from this, the US is not an isolationist country and thus they need to spread their corporations in order to operate in a globalised world. Ireland offers a lot more than tax, such as market access to the EU markets of 500 million people. This market vastly strengthens the US companies back home and help create American jobs. This is illustrated with this quote from Google VP Nelson Mattos “Dublin is keeping Google up and running. If the lights were to go out in California, Dublin would maintain Google worldwide.”

    Neither your post or the CBS show looked at why else companies might locate abroad, which is a real pity.
    James

  2. March 28, 2011 at 7:44 pm

    Thanks James for your comment. See today’s post for a response.

  3. Ribit Ribid
    October 11, 2011 at 4:32 am

    The bits about Ireland are hilarious. Ireland is broke.

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