Pfizer the latest U.S. firm to look overseas for lower taxes


If Pfizer (PFE) is successful in its plan to acquire AstraZeneca (AZN) and redomicile in the U.K., it will join a growing list of other U.S. firms who have executed similar transactions in order to lower their tax bills.

Members of Congress say that the moves are symptomatic of the need to revamp the U.S. tax code.

The U.K. corporate tax rate is 21% compared to the top U.S. rate of 35%. American firms must also pay taxes when they repatriate foreign profits after receiving credits for foreign taxes. This is why the ex-U.S. corporate cash horde is so large.

Pfizer's 2013 tax rate was 27%.

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Comments (4)
  • frosty
    , contributor
    Comments (719) | Send Message
     
    'Members of Congress say that the moves are symptomatic of the need to revamp the U.S. tax code.' Well then, why in the hell don't they do it?!!!!? Instead of sitting on their asses blaming the other party or Obama for the mess.
    29 Apr 2014, 08:12 AM Reply Like
  • gyrogearloose1
    , contributor
    Comment (1) | Send Message
     
    And what is obama's position. Haven't heard it.
    29 Apr 2014, 09:32 AM Reply Like
  • darnoc111
    , contributor
    Comments (1486) | Send Message
     
    He wants to raise taxes. Just look at Illinois and see the future of the USA.
    29 Apr 2014, 10:44 AM Reply Like
  • The Rebel
    , contributor
    Comments (2276) | Send Message
     
    President Obama's budget proposal, which was submitted to Congress on March 4, 2014, includes a provision that, if enacted, would further restrict domestic corporations from expatriating through so-called corporate inversion transactions. The proposals also limit the U.S. tax benefits that can be realized through expatriation transactions.

     

    So his position is not to reform the tax code but to continue his anti-capitalist policies which are designed to further inhibit economic growth by not allowing corporations to get those funds back into the economy, all so the government can tax those funds and redistribute them to those who did nothing to achieve those profits.

     

    If he was really serious about fixing the problem, he would propose reforms that would subject the income earned by a corporation to one tax, thereby eliminating the double tax on dividends. All that overseas money would then find its way back into the U.S. economy.

     

    Don't hold your breath waiting for this to happen. They all love to talk a good game and fool everyone in November.
    29 Apr 2014, 01:36 PM Reply Like
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