The US looking for more multinational tax back from Ireland is a 'big risk' to the economy, an economics columnist has warned.
A recent report from Revenue Commissioners found 87% of corporation tax in 2022 came from multinationals.
Multinational contributions to the income tax take was at 55% despite just 14% of the workforce being employed in the sector.
There were also similar contributions from multinationals to VAT at 54%.
The Sunday Times economics columnist Cormac Lucey told Down To Business our well-being is 'completely dependent' on the sector.
"It would mean that the multinational sector contributed over half of the State's total tax take in 2022," he said.
"And if you make - I think - the more realistic assumption that the multinational contribution to the other tax headings is likely to be on a par with their contribution to VAT, then it would suggest the multinational contribution to the total tax take is above 60%.
"We are completely dependent for our economic well-being on the prosperity and health of the multinational sector".
'Restrictions'
Mr Lucey said one major risk factor is around infrastructure.
"We're already at our limits on electricity, we've got restrictions now coming into Dublin Airport," he said.
"We're having to import huge amounts of labour.
"The immigration debate is centering on applications for refugee status - but there are huge numbers coming in on work permits and study permits.
"I'm for that... but they're finding it difficult, as our own people are to get housing".
'America in recession'
Mr Lucey said the 'bigger danger' is if Washington takes a drastic step to get more money back.
"They're running up huge deficits even though the American economy is flying," he said.
"What will the deficit look like if America goes into recession?
"If it does go into recession, the deficits will get larger, the pressure to close the deficits will grow.
"They may start looking at Ireland saying, 'This is a flea profiting from sitting on our back sucking out some tax revenues maybe we could get".
Mr Lucey said if the US were to impose a world-wide minimum tax rate on their corporations "it wouldn't matter if we were charging American multinationals here 15% if they were eventually going to have to pay the difference back".
He added that while multinational companies are embedded here, customs-free access across the EU is the "golden goose".
