With $160 Billion Merger, Pfizer Moves To Ireland and Dodges Taxes (arstechnica.com)

ourlovecanlastforeve writes: In a $160 billion dollar acquisition, drug company Allergan, a small company based in Ireland, "purchased" Pfizer, allowing the drug producing giant to move to Ireland and lower its tax rate from about 25 percent to 17-18 percent. Ars reports: "Such inversions, which are said to cost the American government billions in lost tax revenue, have drawn scorn from the Obama Administration and the Treasury Department. Last year, President Obama referred to the deals as 'unpatriotic' loopholes and proposed to close them. And last week, the Treasury announced new rules to make such deals more difficult. But Pfizer’s reverse-inversion skirts the rules, in part by keeping ownership split somewhat evenly between the two companies. After the deal is complete, current shareholders of Allergan, which has the majority of its operations in the US, will own 44 percent of the mega company. The remaining 56 percent will be owned by current Pfizer shareholders."

Comments

Re:This would level the playing ground

[LynnwoodRooster]

The top 1% are paying about 22.8% in income tax alone. And overwhelmingly pay capital gains taxes (which would range from 20% to nearly 40%). The myth that "the rich" don't pay taxes is just that - a myth. In actuality they pay the highest tax rates, paying nearly 40% of all income taxes collected whilst earning less than 22% of all income.