International corporate tax loop holes is something that I have been harping on about that needs to change to increase Government tax take around the world, to assist with lowering extreme government debt levels. If addressed it will also have a dramatic impact on corporate earnings, PE ratios & stock market valuations.
Apple & others are under the microscope in Europe & I always suspected Europe would lead this challenge & may force the US's hand to follow suit, despite I imagine immense pressure from lobbyists to leave well alone.
I'm not sure there will be the political will in the US, however in Europe when one country, Ireland, has been giving tax holidays to major international corporates for around 15 years it obviously does not sit well with the rest of Europe. A major boost to Ireland's economy & high skilled employment growth is directly associated with this tax holiday. The implications could be huge for Ireland's economy but overall better for governments around the world getting there fair share of corporate tax.
Something I think to watch closely, particularly in regards the impact on corporate earnings & equity valuations. With equity markets imo already over valued, if international corporates are forced to pay tax they have been able to avoid, PE ratios will blow out considerably & equities will suffer & gold will be a beneficiary.
http://www.nzherald.co.nz/technology...ectid=11335113