Latest news with #GlobalTaxDeal
Irish Examiner
a day ago
- Business
- Irish Examiner
Government urged to lower capital gains tax to 20% in next budget
Ireland's capital gains tax needs to be updated to ensure a fairer transfer of business and to promote sustainability, PWC has said. Publishing its pre-budget submission, the professional services firm said that Ireland's capital gain tax, which is one of the highest in Europe at 33%, should be lowered to 20% to help private businesses. It said that treating the exit of a shareholder from a business as a capital gains tax event rather than being subject to income tax would be an 'important step to achieving this'. It also noted that a reduction in capital gains tax for retrofitted properties would also help promote sustainability. The submission also calls for increases in the capital acquisition tax lifetime threshold, which PWC said remains 'out of kilter' with inflation. It is recommending increases to the capital acquisition tax small gift exemption, as well as the annual exemption. In addition, it said the small benefit exemption should be increased to €2,500 — while the restriction to five benefits should be removed to encourage employers to reward employees throughout the year. Staffing issues remain Attracting and retaining staff remains a key issue for employers, PWC said, urging the Government to incentivise the provision of accommodation by Irish businesses to their employees. At present, where a business rents property to its employees, the company is subject to corporation tax of 25% and a potential close company surcharge, the accounting firm said. Attracting foreign direct investment remains a key priority for Ireland, PWC also noted, especially in the context of current trade uncertainty, global tax reforms, and increasing competition for investment. It added that Ireland needs to diversify its tax policy and put plans in place to attract the next generation of multinationals. 'Budget 2026 is a key opportunity to introduce targeted tax measures to enhance Ireland's position as a global financial services hub,' PWC said in its submission. Padraic Burke, tax leader at PWC Ireland, added: 'The global environment is facing significant upheaval following the new US administration's rejection of the OECD [Organisation for Economic Co-operation and Development] Global Tax Deal. ' The US stance threatens the viability of the entire regime, with the possibility of retaliatory tariffs or withholding taxes that could further strain global trade and economic growth.' Read More Grant scheme to spend €23m upgrading social housing stock
Yahoo
07-03-2025
- Business
- Yahoo
Opinion - How Trump is ending Europe's sabotage of our prosperity
While President Trump is currently shaking international norms, there is one area where his challenge to global institutions is profoundly good: ending America's acquiescence to the Organisation for Economic Cooperation and Development's tax cartel. On his first day back in office, Trump signed a memorandum making clear that this 'Global Tax Deal' has 'no force or effect' in the United States. Instead, he tasked the treasury secretary with making recommendations for reform, signaling a return to full U.S. tax sovereignty and a decisive rejection of European economic defeatism. For years, the OECD — a France-based institution originally designed to promote economic growth — has instead waged war on tax competition. Mistakenly believing that taxes should be collected regardless of where business fundamentally takes place, and that international pressure to offer low taxes or favorable business conditions represents some kind of 'race to the bottom,' it has sought to impose a European-style model of high taxation and economic stagnation on the rest of the world. Its flagship initiative is a two-pillar corporate tax deal, a scheme designed to siphon U.S. business revenues into the coffers of bloated European governments. By pulling out of this misguided arrangement, Trump dealt a blow to bureaucrats in Brussels and Paris who believed they could dictate American tax policy from across the Atlantic. The first pillar of the plan would reallocate corporate profits based on customer location rather than where a company is headquartered or where its innovation takes place. The practical effect? A massive transfer of U.S. tax revenues to foreign governments. By some estimates, American companies would have borne nearly 60 percent of the cost of this scheme. European policymakers, unable or unwilling to create an environment that fosters more entrepreneurship, argued that this is the 'fairest' tax policy. What's fair about forcing the most innovative companies in the world to subsidize the inefficiencies of high-tax welfare states? The second pillar of the OECD's plan, a globally mandated minimum corporate income tax of 15 percent, was even more brazen. The goal was clear: abolish tax competition and impose a de facto cartel, preventing countries from using pro-growth tax policies to attract investment. This fixation on stopping a so-called race to the bottom ignores the reality that tax competition has been a boon to global prosperity. Since the 1980s, the steady decline in corporate tax rates has spurred investment, driven productivity gains, and created millions of jobs. European policymakers apparently see this dynamism not as a model to emulate, but as a threat to be neutralized. Trump's swift rejection of this OECD tax regime is more than just a defense of U.S. sovereignty; it is a declaration that the U.S. will continue to embrace growth and innovation rather than succumb to managed decline. Europe's economic stagnation is not an accident — it is the inevitable result of high taxes, crushing regulation and a cultural hostility toward risk-taking and wealth creation. Rather than reform, European leaders have doubled down, turning to institutions like the OECD to globalize their failures. This is a dramatic reversal from the Biden administration's inexplicable embrace of the OECD plan, despite the fact that it would disproportionately harm American companies. Under Biden, U.S. policymakers seemed content to let Brussels and Paris dictate the terms of global tax policy. But Trump's memorandum should be just the beginning. If the OECD remains committed to undermining tax competition and redistributing American tax revenues to Europe, why should the U.S. continue to fund it? The U.S. is the single largest budgetary contributor to the OECD, underwriting an institution that actively works against American interests. If the OECD refuses to return to its original mission of promoting economic expansion and free trade, Washington should consider withdrawing from it altogether. Since the U.S. joined the OECD through an executive agreement rather than a formal treaty ratified by the Senate, withdrawal could be initiated by the president without congressional approval. The State Department, which oversees U.S. participation in the OECD, would need to notify the organization's secretary-general of the decision to withdraw. The U.S. could also immediately halt its financial contributions, which are appropriated through the federal budget and managed by the Department of the Treasury. While there is no formal exit clause in the OECD's founding convention, the U.S. could set a withdrawal timeline unilaterally, similar to past exits from international organizations such as UNESCO. Europe's economic malaise is a cautionary tale, not a blueprint. By rejecting the OECD's tax cartel, Trump has reaffirmed America's commitment to the principles that made it an economic powerhouse: low taxes, regulatory freedom and a culture that rewards success rather than punishes it. The U.S. does not need Europe's permission to compete. It should lead by example and let the world follow. Jack Salmon is a research fellow with the Mercatus Center at George Mason University. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
07-03-2025
- Business
- The Hill
How Trump is ending Europe's sabotage of our prosperity
While President Trump is currently shaking international norms, there is one area where his challenge to global institutions is profoundly good: ending America's acquiescence to the Organisation for Economic Cooperation and Development's tax cartel. On his first day back in office, Trump signed a memorandum making clear that this 'Global Tax Deal' has 'no force or effect' in the United States. Instead, he tasked the treasury secretary with making recommendations for reform, signaling a return to full U.S. tax sovereignty and a decisive rejection of European economic defeatism. For years, the OECD — a France-based institution originally designed to promote economic growth — has instead waged war on tax competition. Mistakenly believing that taxes should be collected regardless of where business fundamentally takes place, and that international pressure to offer low taxes or favorable business conditions represents some kind of 'race to the bottom,' it has sought to impose a European-style model of high taxation and economic stagnation on the rest of the world. Its flagship initiative is a two-pillar corporate tax deal, a scheme designed to siphon U.S. business revenues into the coffers of bloated European governments. By pulling out of this misguided arrangement, Trump dealt a blow to bureaucrats in Brussels and Paris who believed they could dictate American tax policy from across the Atlantic. The first pillar of the plan would reallocate corporate profits based on customer location rather than where a company is headquartered or where its innovation takes place. The practical effect? A massive transfer of U.S. tax revenues to foreign governments. By some estimates, American companies would have borne nearly 60 percent of the cost of this scheme. European policymakers, unable or unwilling to create an environment that fosters more entrepreneurship, argued that this is the 'fairest' tax policy. What's fair about forcing the most innovative companies in the world to subsidize the inefficiencies of high-tax welfare states? The second pillar of the OECD's plan, a globally mandated minimum corporate income tax of 15 percent, was even more brazen. The goal was clear: abolish tax competition and impose a de facto cartel, preventing countries from using pro-growth tax policies to attract investment. This fixation on stopping a so-called race to the bottom ignores the reality that tax competition has been a boon to global prosperity. Since the 1980s, the steady decline in corporate tax rates has spurred investment, driven productivity gains, and created millions of jobs. European policymakers apparently see this dynamism not as a model to emulate, but as a threat to be neutralized. Trump's swift rejection of this OECD tax regime is more than just a defense of U.S. sovereignty; it is a declaration that the U.S. will continue to embrace growth and innovation rather than succumb to managed decline. Europe's economic stagnation is not an accident — it is the inevitable result of high taxes, crushing regulation and a cultural hostility toward risk-taking and wealth creation. Rather than reform, European leaders have doubled down, turning to institutions like the OECD to globalize their failures. This is a dramatic reversal from the Biden administration's inexplicable embrace of the OECD plan, despite the fact that it would disproportionately harm American companies. Under Biden, U.S. policymakers seemed content to let Brussels and Paris dictate the terms of global tax policy. But Trump's memorandum should be just the beginning. If the OECD remains committed to undermining tax competition and redistributing American tax revenues to Europe, why should the U.S. continue to fund it? The U.S. is the single largest budgetary contributor to the OECD, underwriting an institution that actively works against American interests. If the OECD refuses to return to its original mission of promoting economic expansion and free trade, Washington should consider withdrawing from it altogether. Since the U.S. joined the OECD through an executive agreement rather than a formal treaty ratified by the Senate, withdrawal could be initiated by the president without congressional approval. The State Department, which oversees U.S. participation in the OECD, would need to notify the organization's secretary-general of the decision to withdraw. The U.S. could also immediately halt its financial contributions, which are appropriated through the federal budget and managed by the Department of the Treasury. While there is no formal exit clause in the OECD's founding convention, the U.S. could set a withdrawal timeline unilaterally, similar to past exits from international organizations such as UNESCO. Europe's economic malaise is a cautionary tale, not a blueprint. By rejecting the OECD's tax cartel, Trump has reaffirmed America's commitment to the principles that made it an economic powerhouse: low taxes, regulatory freedom and a culture that rewards success rather than punishes it. The U.S. does not need Europe's permission to compete. It should lead by example and let the world follow.
Yahoo
26-01-2025
- Business
- Yahoo
List: All of Trump's executive orders on the economy
WASHINGTON (NewsNation) — President Donald Trump started his second administration with a flurry of policy actions since returning to the White House on Jan. 20. In total, the Republican president's sweeping actions reflect many of his campaign promises and determination to concentrate executive branch power in the West Wing. Here's a look at the executive orders the president has signed on the economy since taking office: Crisis on the border: Trump's first week tackling immigration Trump has broadly directed all executive agencies to tailor their policies to reduce consumer prices. Trump wants a progress report from a top White House economic adviser every 30 days. He's directed the treasury and commerce secretaries, U.S trade representative and others to examine causes of U.S. trade deficits, identify unfair trade practices and make recommendations, potentially including 'a global supplemental tariff.' His administration will begin the establishment of an 'External Revenue Service to collect tariffs, duties and other foreign trade-related revenues.'t What is the minimum income to file this year's tax return? Directed the commerce and trade secretaries and the U.S. trade representative to consolidate multiple reviews and assessments. Trump ordered consolidated reports by April 1. Ordered a review of U.S. trade dealings with China to consider new or increased tariffs. As a candidate, Trump threatened Chinese tariffs as high as 60%. He moved to suspend U.S. participation in the Global Tax Deal, an international agreement intended to set a minimum corporate tax globally to prevent multinational corporations from avoiding taxation altogether. He has initiated a review of the U.S.-Mexico-Canada Agreement, Trump's first-administration rewrite of NAFTA, with an eye to a renegotiation in 2026 or sooner. Trump said he plans 25% tariffs on Canadian and Mexican goods as of Feb. 1, but he has not signed such executive actions so far. NewsNation's Jeff Arnold and the Associated Press contributed to this report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
