So, where this is going?

kuratowski

The tax deal has been in discussion for years.  It was front page news in 2019 when the US finally agreed to an OECD proposal.  I would say it was largely already priced into the markets.

Bobziz

May even have been priced in at a higher rate than that agreed...

sebtomato

kuratowski said:

The tax deal has been in discussion for years.  It was front page news in 2019 when the US finally agreed to an OECD proposal.  I would say it was largely already priced into the markets.

I don't think markets actually "price" many items in advance. We tend to give the analysts and fund managers a lot more "science" than there is. It's all down to sentiment.
Pretty sure the valuation of large US tech companies is already very high, without even including a drop of 10%+ of profits...
Let's see what happens tomorrow to Google, Amazon, Facebook, Apple and Microsoft, even though the taxation is not going to come in play for a while.

Prism

sebtomato said:

kuratowski said:

The tax deal has been in discussion for years.  It was front page news in 2019 when the US finally agreed to an OECD proposal.  I would say it was largely already priced into the markets.

I don't think markets actually "price" many items in advance. We tend to give the analysts and fund managers a lot more "science" than there is. It's all down to sentiment.
Pretty sure the valuation of large US tech companies is already very high, without even including a drop of 10%+ of profits...
Let's see what happens tomorrow to Google, Amazon, Facebook, Apple and Microsoft, even though the taxation is not going to come in play for a while.

Why do you think it is 10% more tax? These companies make most of their money from the US where they already pay corporation tax. And if they do pay tax in the country they earn it in then they won't may it again in the US.

Nebulous2

Look at the tech companies enthusiasm for this deal. They were expecting worse. Look at the brain power they invest in, compared to public employees. They’ll subvert this all the way and end up playing less than the already low ambitions displayed. 

barnstar2077

Nebulous2 said:

Look at the tech companies enthusiasm for this deal. They were expecting worse. Look at the brain power they invest in, compared to public employees. They’ll subvert this all the way and end up playing less than the already low ambitions displayed. 

I'm with you on this one, I think this could have been a lot worse for the tech companies.

I am sure they will find some creative ways around paying most of it anyway, it is what big companies do.  Whether that be constantly spending money on expansion, or setting up other companies in tax havens and then buying services from themselves at inflated prices etc.