American drug maker Pfizer has reached an agreement with the Irish based Allergan to merge in a $160 billion deal that would create the largest drug company in the world.
Coming with this merger is also a concern about an inversion re-organization.
Even though most of Allergan’s operations are run out of New Jersey, since it is based in Ireland they pay taxes to that government, which are lower, and not to the United States.
Now it appears that the tax base of this new super-company will be leaving the U.S. entirely.
Hillary Clinton criticized the deal and said that in future, such inversions should be prevented.
“I urge Congress to act immediately to make sure the biggest corporations pay their fair share, and regulators also should look hard at stronger actions they can take to stop companies from shifting earnings overseas,” she said.
Independent Vermont Senator Bernie Sanders has gone even further, saying that the deal needs to be stop.
“The Pfizer-Allergan merger would be a disaster for American consumers who already pay the highest prices in the world for prescription drugs. It also would allow another major American corporation to hide its profits overseas. The Obama administration has the authority to stop this merger, and it should exercise that authority. Congress also must pass real tax reform that demands that profitable corporations pay their fair share of taxes,” he said in a statement on his website.
[Politico] [The Associated Press]