FDI to Republic takes steep dive under Trump tax reforms [Ireland]

Irish Times ^ | 10/19/2018 | Charlie Taylor

[Olog-hai]

Large-scale repatriations by US multinationals following tax reforms under President Donald Trump meant total foreign direct investment (FDI) in the Republic fell sharply in the first six months of 2018.

New figures show that FDI in Ireland went into reverse in the first half of the year as many US companies moved to repatriate accumulated foreign earnings from their affiliates abroad.

According to statistics from the United Nations Conference on Trade and Development (UNCTAD), total FDI inflows to the State declined by $81 billion (€71 billion). With $2 billion of that accounted for by new investments, the figure for capital outflows is $79 billion, from a plus reading of $6 billion in the first half of 2017, to a negative $73 billion for the same six months of this year. […]

The outflow of capital back to parent operations comes after the enactment of the US tax reform package which gave multinationals a one-time special rate of 15.5 percent on the repatriation of profits earned abroad.

Astrit Sulstarova, who leads UNCTAD’s investment trends and data section, told The Irish Times that there was no doubt the slump in FDI was as a result of US companies sending money back home. …

[Olog-hai]

Well, that is funny, given that they go along with the EU’s attacks on “tax havens” but complain when US investors bring funds back home after using Ireland as such a haven. It’s almost as if they’re saying they can’t generate their own wealth.

[Spiridon]

Donald Trump wins it for America again and that Irish Prime Minister isn’t gay about it. Sarcasm.