US abandons tax move aimed at bringing companies home

A plan to introduce a border adjustment tax has been abandoned by Republicans in Congress, a development that will be welcomed by the Irish Government.

A group of senior Republicans announced that they were setting aside a proposal to introduce a tax on imports, a move that would have impacted the State’s exports into the US.

Ireland runs a large trade surplus in goods with the US – exporting more than it imports – an imbalance that the White House has said it wants to rectify. China, Mexico and Germany are some of the other main exporters that run a surplus with the US.

A statement from the group known as the “Big Six” – the most senior Republicans in the legislative and executive branch of the US government – said that they had decided to drop the proposal.

“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” the group said in a statement.

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