Pfizer Inc.’s announcement that it intends to merge with Ireland-based Allergan and move its headquarters to Dublin has sparked a furious debate over corporate responsibility and the tax code.
Is Pfizer attempting to dodge taxes? Of course it is. In fact, it admits as much, although it doesn’t put the matter negatively. Its CEO argues that other pharmaceutical companies based abroad have a big advantage over his firm because of the way this country taxes profits earned abroad and then brought home.
No one actually disputes that the U.S. treats corporate foreign profits differently from most countries, including all of the large industrial nations.
U.S. officials can complain about “corporate deserters” and greed all they like, but if companies can save billions by migrating abroad, then some executives will find a way to do so.
Pfizer’s move is surely disappointing, but it is hardly surprising.
And if Congress and the president want to stop similar moves in the future, they’ll take a look at the tax code that prompted Pfizer to move in the first place.
To send a letter to the editor about this article, submit or check out our for how to submit by e-mail or mail.
