Giving up US citizenship could save Pfizer $35B in taxes

[Peter1469]

Giving up US citizenship could save Pfizer $35B in taxes (https://www.washingtonpost.com/news/business/wp/2016/02/25/giving-up-its-u-s-citizenship-could-save-pfizer-35-billion-in-taxes/)

This includes direct tax savings as well as savings on taxes that would be paid if it brought money kept overseas back to the US. Our tax code encourages this. Change it. Slash business taxes. Business would flock here.


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 (http://www.americansfortaxfairness.org/reports/pfizer-price-gouger-tax-dodger/) 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.

[JDubya]

Let them move overseas, bar them from selling their products here, reverse engineer every drug they make, negate all their patents and let some other more patriotic American company produce it here cheaper.

Buh-bye, Pfizer!!!

And GFYS.

[Peter1469]

Let them move overseas, bar them from selling their products here, reverse engineer every drug they make, negate all their patents and let some other more patriotic American company produce it here cheaper.

Buh-bye, Pfizer!!!

And GFYS.

That is a silly suggestion when that would help Americans, especially sick and elderly Americans. As I said above, this is purely the result of the US tax code. You can repel companies from the US or attract them to the US.

Choose.

[Don]

Seeing as how corporations don't really pay taxes anyway why not stop being hypocrites and make it zero. Not lower it to 15% or even 10%. Just make it zero. We pay their taxes at the point of sale. If we got a big savings on products we would have more money to spend which generates more wealth, unlike government spending. People who work for the corporations, including CEO's would still pay tax just like they do now.

[Peter1469]

Seeing as how corporations don't really pay taxes anyway why not stop being hypocrites and make it zero. Not lower it to 15% or even 10%. Just make it zero. We pay their taxes at the point of sale. If we got a big savings on products we would have more money to spend which generates more wealth, unlike government spending. People who work for the corporations, including CEO's would still pay tax just like they do now.

Not to derail my own thread, but that is also my argument for only allowing individuals to contribute to political campaigns. :smiley:

[Don]

I agree.

[zelmo1234]

Let them move overseas, bar them from selling their products here, reverse engineer every drug they make, negate all their patents and let some other more patriotic American company produce it here cheaper.

Buh-bye, Pfizer!!!

And GFYS.

That would be a Great Idea if you wanted to see more and more Drug companies move? This is what is funny about those on the left? They think that companies are Stupid. Do you actually think that Drug companies are going to do something, that if done to them are going to put them out of business.

These companies are not doing this because they want too. The ACA and God forbid Bernie's Single payer, do not pay medical providers enough to cover the current costs. The taxes and regulations, which would massively increase if the next President is a Democrat, will force many companies to make this decision.

It is not Rocket science, it is math, which democrats and leftist can't seem to do very well. So my suggestion is to stop hating the player and start hating the game.

[donttread]

Giving up US citizenship could save Pfizer $35B in taxes (https://www.washingtonpost.com/news/business/wp/2016/02/25/giving-up-its-u-s-citizenship-could-save-pfizer-35-billion-in-taxes/)

This includes direct tax savings as well as savings on taxes that would be paid if it brought money kept overseas back to the US. Our tax code encourages this. Change it. Slash business taxes. Business would flock here.

A consumption tax fixes most of that in a heart beat . But lets face it our "tax code" is really a "control code"

[Peter1469]

A consumption tax fixes most of that in a heart beat . But lets face it our "tax code" is really a "control code"

It is also a tax code that pushes corporations and wealthy people off shore.

[donttread]

It is also a tax code that pushes corporations and wealthy people off shore.

Absolutely. I first realized how corrupt the tax code was in the 80's when I could legally deduct my credit card interest but NOT my tuition!

[Matty]

A consumption tax fixes most of that in a heart beat . But lets face it our "tax code" is really a "control code"


Correct. It is punitive! O'Reilly was talking about this last night in relation to Bernie Sanders. The top 1% wage earners pay 44% of the federal income tax and they number just over a million people. So a million people pay almost half of all federal tax revenues in a country of 350 million. And, Bernie wants more. And, the left keeps yelling they don't pay their fair share. This is theft. Flat tax on absolutely every citizen is the fair way to go.

[Peter1469]

Correct. It is punitive! O'Reilly was talking about this last night in relation to Bernie Sanders. The top 1% wage earners pay 44% of the federal income tax and they number just over a million people. So a million people pay almost half of all federal tax revenues in a country of 350 million. And, Bernie wants more. And, the left keeps yelling they don't pay their fair share. This is theft. Flat tax on absolutely every citizen is the fair way to go.

Or toss the taxes on income all together. Tax consumption with tax credits to the poor. The poor can buy a lot of stuff used to avoid taxes. Thrift shops, used cars, yard sales, etc.

[donttread]

Correct. It is punitive! O'Reilly was talking about this last night in relation to Bernie Sanders. The top 1% wage earners pay 44% of the federal income tax and they number just over a million people. So a million people pay almost half of all federal tax revenues in a country of 350 million. And, Bernie wants more. And, the left keeps yelling they don't pay their fair share. This is theft. Flat tax on absolutely every citizen is the fair way to go.

Well at this point most of those top 1% have amassed their fortunes partly through undue influence over the government and the tax code. Like how Mitt Romney pays less tax on his last dollar earned than I do. And they need to make that right before we go to a totally flat tax

[Peter1469]

Well at this point most of those top 1% have amassed their fortunes partly through undue influence over the government and the tax code. Like how Mitt Romney pays less tax on his last dollar earned than I do. And they need to make that right before we go to a totally flat tax

When you invest in capital you take risk. That is why long term capital gains have a lower tax rate. It isn't a conspiracy against you.

[zelmo1234]

Well at this point most of those top 1% have amassed their fortunes partly through undue influence over the government and the tax code. Like how Mitt Romney pays less tax on his last dollar earned than I do. And they need to make that right before we go to a totally flat tax

You mean that he pass less on his last dollar earned but that is money he already paid taxes on at a much higher rate.

Investment income is taxed lower or it would discourage investment cripple those that are living off their investments, and bankrupt many pension funds.

On his income he pays much more than you do.

[zelmo1234]

When you invest in capital you take risk. That is why long term capital gains have a lower tax rate. It isn't a conspiracy against you.

And the money has already been taxes as income.