Ireland is now the fifth-largest source of foreign direct investment in the US, with investment by Irish companies totalling $389 billion (€335 billion), according to Enterprise Ireland, an Irish Government agency.
The Government provides a breakdown of the information. It lists 10 Irish countries that employ 125,000 people, and there has been a blank on Tax Inversions.
Irish Investment in the United States Reaches Historic Levels
Apart from the 10 Irish companies, there is no reference to where the remaining $389 billion is coming from.
This is Leprechaun economics again.
In 2024, Enterprise Ireland reported that worldwide the value of goods was €36,75 billion, with the value in North America of only €7.3 billion.
We sell goods valued at about €5.5 billion to the U.S., but Irish companies spend $389 billion there?
In 94 years, from 1932, only 11 multinational firms have been born in Ireland.
1) Irish Bottle Company 1932
2) Jefferson Smurit 1934
3) Glanbia 1964
4) Kingspan 1965
5) Cement Roadstone 1970
6) The Kerry Cooperative Society, 1972
7) Glen Dimplex 1973
8) DCC 1976 9) Ryanair 1984
10) ICON 1990
11) Fineos Corporation 1993.
Tax Inversions
The Irish Times says Irish firms, including Smurfit Westrock, Kingspan, Glanbia, Kerry Group, Applegreen and CRH, view the US market as “their primary engine for global growth,” Enterprise Ireland said.
Smurfit Westrock, the world’s largest listed packaging company, has a staff of 32,000.
Tax Inversions in Ireland involve U.S. companies acquiring Irish-based entities to relocate their legal headquarters to Ireland, aiming to reduce tax on non-U.S. earnings.
Notable examples include Allergan (via Actavis), Medtronic (via Covidien), Eaton Corporation, Perrigo, and Jazz Pharmaceuticals. These moves, popular in the pharma and tech sectors, take advantage of Ireland's low corporate tax rate and favourable holding company regime.
There are about 30 Tax Inversions in Ireland.
Some have just a small office, while Medtronic had a number of Irish units before it moved the head office to Dublin in 2015.
Enterprise Ireland is an Irish government agency that supports companies to sell overseas. In 2024, exports from Ireland to North America were only at €7.50 billion.
Medtronic/Covidien: Medtronic moved to Ireland in 2015 via a $48 billion merger with Covidien.
Medtronic has a number of factories in Ireland.
However, the head office in Ireland is for tax dodging.
The Irish Government likes the sham.
"Enterprise Ireland, the government of Ireland’s trade and innovation agency, today announced that Irish investment in the United States has reached historic levels, with Ireland rapidly ascending to become the 5th largest source of Foreign Direct Investment (FDI) into the U.S.+"
Discusion
Luxembourg and Ireland are often at the top of international rankings because of misleading data.
The U.S. Bureau of Economic Analysis provide data on Foreign Direct Investment in the United States.
In 2024, Ireland was the largest source of new investment expenditures in the U.S., accounting for $30.1
A recent report published by the American Chamber of Commerce Ireland (AmCham) said that in 2024, more was invested by Ireland than it invests in China, Germany, and France combined.
Of course, the American Chamber will not refer to Tax Inversions.
Three American firms pay a third of Ireland's corporation tax
Ireland has some of the characteristics of a tax haven.
This is why the Leprechaun economics are in their tenth year.
"Leprechaun economics" is a term coined by economist Paul Krugman to describe the 26.3% rise in Ireland's 2015 GDP, which resulted from multinational corporations shifting assets to Ireland for tax purposes, not genuine economic growth. It highlights how foreign direct investment, specifically intellectual property, can artificially inflate GDP, making it a poor reflection of the actual economy or citizens' living standards.
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