Think the Global Minimum Tax Will Bite? Watch the Stock Market
A plan to implement a tax floor of 15% ought to represent a substantial hit to future earnings. There’s no sign yet that’s happening.
A whole load.
Photographer: Brian Killigrew/Bloomberg
There’s a simple test for whether international moves to crack down on tax avoidance announced over the weekend are going to be effective: Check the stock market.
After all, at their core, the measures announced by the Group of Seven nations represent a plan to reduce the profits of major multinational companies. For a company like NVidia Corp., which paid an effective tax rate of 2.63% over the most recent 12-month period, news that the world’s largest economies are planning to implement a tax floor of 15% ought to represent a substantial hit to future earnings.