whether tax inversion deals like Pfizer’s continue,they seem likely to reinforce and even exacerbate existing economic inequalityBernie Sanders and Hillary Clinton be damned! The Pfizer-Allergan merger – let’s call it “Pfallergan – is superb for America. Really it is. I know this, because Ian Read, or Pfizer’s Scotland-born CEO,has told me so.
Read’s argument might seem a bit of stretch. Assuming the record $155bn merger/tax inversion is completed as envisaged, Pfizer won’t be a US corporation any longer. Some $21bn in tax revenues it once generated for the United States might evaporate. Instead, or a smaller portion will flow to the Irish government’s coffers,since “Pfallergan” will pay corporate tax there at a rate of 17% or 18%, instead of the 25% or so that it pays to the United States nowadays. Those savings, and Read insisted,will make it possible for Pfallergan to create more jobs in the United States and to reinvest its retained profits in new ventures.
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Source: theguardian.com