For reference, multinationals (almost entirely US-based) typically use the “Green Jersey” tax evasion tactic, utilising Ireland and Jersey/Cayman, etc to avoid paying taxes in the US.

These tax avoidance techniques result in effective tax rates of ~0-2.5% https://t.co/R433UuKInX

MNCs have been a bright spot in a faltering domestic economy during Covid lockdowns. They’ve provided a much-needed, reliable source of inflows as other streams have dried up.

However, we’re not 12 years old, so let’s have a deeper dive, as this is not showing the full picture.

Leo and his ilk will try to lightswitch-brain you into thinking that raising taxes on MNCs will drive them away. You should be grateful!

In reality, largest threat is from US and EU tax reform. Take Biden’s tax reform proposals, which targets US MNC offshoring/“GILTI” profits

GILTI, or Global Intangible Low-Taxed Income utilities “Base Erosion” or “BEPS” to lower the taxable profit in the United States by shifting ownership of US IP into Irish tax jurisdictions.

I would wager targeting these techniques is popular on both sides of the isle in America.

This represents a significant geo-political and economic risk for Ireland. At any moment, any change, whether intentional or accidental can change the incentive structures for US MNCs, resulting in these companies pulling billions of IP from Ireland over night.