It was Janet Yellen Day in Dublin on Monday with the US treasury secretary flitting between Government Buildings and events held with the American Chamber of Commerce in Ireland and the Institute of International and European Affairs (IIEA). She even tweeted a photo of a meeting with Bono.
There must have been some tough talking in those behind-the-scenes negotiations recently between Yellen and Minister for Finance Paschal Donohoe that finally shifted the State off its prized 12.5 per cent corporate tax rate. But it's all water under the bridge now. Yellen and Donohoe presented a united front yesterday, praising each other and the new global tax deal at every turn. It had been brokered in an atmosphere of "friendship and co-operation", Donohoe said. At an event hosted by the IIEA which he and Yellen attended, Donohoe spoke of Yellen's "principled commitment" in the negotiations and her steadfast rejection of "policies that would further fragment the world economy". For her part, she said: "Minister Donohoe has been terrific in trying to understand the US perspective."
She dismissed talk of Ireland being “cajoled” into the deal or her visit being about mending fences. “I think we’ve had very productive exchange of views over the last several months,” she said, noting that Donohoe told her during the negotiations that she could walk down the main shopping street in Dublin and any passerby would likely be able to tell her what the corporate tax rate was. That showed what a “touchstone issue” corporate tax is in Ireland, she said.
Yellen led the charge towards achieving a global minimum corporate tax rate of 15 per cent – a move endorsed by the leaders of the world’s 20 biggest economies on Saturday – to end what she long described as a “race to the bottom” on corporate taxation. She said it was vital to ensure corporations pay their fair share of tax around the world and that Ireland with its “educated workforce and an excellent business environment” would continue to thrive with the new rate.
There was no mention of the soft power that pushed the State over the line or Donohoe’s pushback that removed the words “at least” from the final wording on the new minimum rate in the deal. A beautiful day, as Bono might say.
