Giving Up Its U.S. Citizenship Could Save Pfizer $35 billion In Taxes

[Purveyor]

Source: Washington Post

By Renae Merle February 25 at 1:01 PM

When Pfizer announced its plan last year to merge with Botox-maker Allergan and move its headquarters to Ireland the company said the deal would lower its tax rate to about 17 percent to 18 percent, saving it about $2 billion over three years.

But in a report published Thursday, Americans for Tax Fairness say the New York-based pharma giant will actually save much more by giving up its U.S. citizenship: $35 billion.

Pfizer is merging with the smaller Dublin-based Allergan in what is known as an “inversion,” in which U.S. companies are bought by or merge with foreign firms in order to reduce U.S. corporate tax burdens. The Pfizer-Allergan deal is the largest inversion ever and has raised angst among lawmakers.

In addition to lowering its effective tax rate from about 25 percent, Americans for Tax Fairness notes that Pfizer will gain access to $148 billion in profits it earned overseas and currently can’t bring back to the United States without taking a tax hit. Bringing the cash would have cost the firm $35 billion, according to the left-leaning advocacy group.

Read more: https://www.washingtonpost.com/news/business/wp/2016/02/25/giving-up-its-u-s-citizenship-could-save-pfizer-35-billion-in-taxes/

[SoapBox]

1. ...and we let them get away with it.

$35 billion?

Really?

I would like an independant investigation into that number.

[kristopher]

2. Exhaustive Study Finds Global Elite Hiding Up to $32 Trillion in Offshore Accounts

Democracy NOW

A new report reveals how wealthy individuals and their families have between $21 and $32 trillion of hidden financial assets around the world in what are known as offshore accounts or tax havens. The actual sums could be higher because the study only deals with financial wealth deposited in bank and investment accounts, and not other assets such as property and yachts. The inquiry was commissioned by the Tax Justice Network and is being touted as the most comprehensive report ever on the "offshore economy." It also finds that private banks are deeply involved in running offshore havens, with UBS, Credit Suisse and Goldman Sachs handling the most assets. We’re joined by the report’s author, James Henry, a lawyer and former chief economist at McKinsey & Company. [includes rush transcript]


Video at link
http://www.democracynow.org/2012/7/31/exhaustive_study_finds_global_elite_hiding

[cstanleytech]

5. Ya, its times like this that I lean towards being pro head on pike. nt

[passiveporcupine]

8. I'm sorry. I can't stop laughing.

Did you mean head on a spike? Because now I keep picturing a head on a pike...and it's almost as funny as a bunny with a pancake on it's head.

Pike


I'm not going to the trouble of photoshopping a head on a pike, but my imagination is doing a pretty good job.

[Hestia]

12. Term with history - Head on Pike

https://en.wikipedia.org/wiki/Pike_(weapon)

[bjobotts]

3. Not if we change our trade policies. Not aa "tax hit" to pay your fair share.

Before Reagan corporations paid 90%...Kennedy brought it down to 65% but closed loop holes. Profiteers want it all without paying any taxes. Sorry...it's the admission price for being in a democracy. We need to change our trade policies so it is just as expensive to make it or service it overseas and then bring it back here as it would be just to make it here in the first place...only the profits and the jobs stay in America. When we had tariffs and none of these ridiculous trade policies plus the 90% corporate tax rates, corporations put their money back in their businesses rather than let it go to Uncle Sam in taxes. Back when there was no income inequality killing the poor and the middle class The 90% tax rate only kicked in after the first 5 or 10 million in profits. "When does the greed stop" How many more billions does one have to have to quit bitching about paying $148 million in taxes. All corporations need to be regulated and quit manipulating and bribing our democracy.

[Thor_MN]

4. Tell US Corporations that do inversions that their US patents are now null and void.

[kentauros]

6. Just what I was thinking.

However, it would be best then if the US government took full control of those patents so that no other company could buy them up. Let the government put them into the public domain. And don't allow minor "improvements" to regain control of them.

[moondust]

7. And they may lose access

to the U.S. market altogether.

Other, less greedy companies can bid on the patents and hire Americans to produce those products in the U.S. while paying their fair share of taxes.

[redruddyred]

9. if corporations leave the US

can we prohibit them from buying our elections?
that's a serious question.

[AxionExcel]

10. Probably not under Citizens United and agreements like the TPP

Meet your new Corporate Overlords,
same as the Overlords of yesteryear.

[Ghost Dog]

11. Is it not already illegal for non-US citizens,

corporate or otherwise, to buy US politicians or otherwise engage in bribery, blackmail and political corruption, not to mention sedition?

It is a serious question.

[Sunlei]

13. change the laws and let other companies make the medicines, at a lower price

[Grins]

14. They paid taxes?

If Pfizer, a pharmaceutical company, actually paid taxes they need new tax people.

Competitor Merck doesn't pay taxes:

&quot In 2014) Merck, the second largest pharmaceutical company in the U.S., actually had a negative effective tax rate of 7.5% during the second quarter, which means it got a tax credit."