Shares week forward: Why Wall Avenue fears a worldwide tax deal

Group of Seven finance ministers gathering in London agreed Saturday to back a global minimum tax of at least 15% on multinational companies. The group also said that the biggest companies should pay tax where they generate sales, and not just where they have a physical presence.

The news provides momentum ahead of the meeting of G7 leaders in Cornwall, England this week, as well as a meeting of G20 finance ministers in Venice, Italy in July.

An agreement among top economies would also accelerate negotiations among roughly 140 countries that are being led by the Organization for Economic Cooperation and Development.

“If the G7 agrees and then the G20, the likelihood of [a broader] agreement is probably pretty good,” Elke Asen, a policy analyst at the Tax Foundation’s Center for Global Tax Policy, told CNN.

But opposition remains from countries including Ireland, which has successfully recruited global companies including big US tech firms by offering a corporate tax rate of just 12.5%….

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