Obama's Tax Threat (IRELAND)

The alarm bells should have gone off loud and clear when US president Barack Obama named Ireland as one of three countries where the activities of US multinationals and their overseas tax payment policies were being scrutinised.

The relatively sanguine reaction in Ireland is puzzling. If there is one aspect to Obama so far it is that he means what he says when he pursues a policy.

There is an element of whistling past the graveyard in my opinion in the Irish reaction to the Obama proposals, a kind of “it’ll be all right on the night” approach. That could be a major mistake.

The reality with Obama is that every major campaign promise, including this one to reform American tax policy as it affects overseas earnings has been followed up in a methodical and direct manner.

Healthcare, reform of the financial system, immigration reform are being approached in a similar way. He is a new kind of politician, one utterly devoid of sentiment as one insider characterised him to me. There will be no special pleadings or deals as far as he is concerned.

What this means for the Ireland/US relationship is important.

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