The merger will provide Pfizer with the option to move its headquarters to Ireland, which would allow the company to lower its taxes. The New Yorker is calling the merger a disgrace:
Tax-driven deals of this nature are known as “inversions,” and they are becoming increasingly common…..The Pfizer–Allergan deal will be the biggest inversion yet, and it is nothing short of a disgrace. Drug companies like Pfizer have long benefitted from taxpayer-funded research carried out under the auspices of organizations like the National Institutes of Health and the National Science Foundation. Now, Pfizer is seeking to avoid paying the taxes that are due on its profits, particularly profits generated by its overseas subsidiaries.
Politicians on both sides of the aisle are voicing concern about the merger. Democratic presidential candidate Hillary Rodham Clinton said:
“This proposed merger, and so-called ‘inversions’ by other companies, will leave U.S. taxpayers holding the bag,” Clinton said. “As President, I will fight to reform our tax system to reward growth, innovation, and job creation here in the United States. “
“The fact that Pfizer is leaving our country with a tremendous loss of jobs is disgusting. Our politicians should be ashamed.”
In a New York Times story, Pfizer’s chief executive claims the merger will be good for the U.S. because cutting Pfizer’s tax bill will “give it (the company) more cash that it could invest in the United States and ultimately add jobs.”
What do you think about this merger? We would love to hear your thoughts on whether you think it will have an effect on health and healthcare here in Arizona.