Warning shot from the US

President Obama delivered on another campaign promise this week that of protecting US businesses and of protecting jobs at home. I was privileged enough to be working on the campaign in Ohio when the then Senator said that he would stop tax breaks for business taking jobs overseas

"When it comes to jobs, the choice in this election is not between putting up a wall around America or allowing every job to disappear overseas. The truth is, we won't be able to bring back every job that we've lost, but that doesn't mean we should follow John McCain's plan to keep giving tax breaks to corporations that send American jobs overseas. I will end those breaks as President, and I will give American businesses a $3,000 tax credit for every job they create right here in the United States of America."

The big fear has been that the President would remove tax breaks in total from US companies setting up outside the USA. In the end his policy removes tax breaks on expenses and targets tax havens. So much or the good news.

"Nearly one-third of all foreign profits reported by U.S. corporations in 2003 came from just three small, low-tax countries: Bermuda, the Netherlands, and Ireland"

So Ireland is on the agenda! As a potential target of future US taxation policy I am not sure Ireland wants this kind of attention. Given the special importance of the all-island economy, in the present economic difficulties, dont think for a moment that Northern Ireland will not be affected. Watch this space!