Pfizer – one of the world’s wealthiest pharmaceutical companies – recently announced that it is moving its tax address offshore so it can claim foreign citizenship and dodge taxes here at home.
Under this tax loophole, known as an “inversion,” Pfizer claims that it will become an Irish company. Its headquarters and employees will stay here in the U.S. The company will continue to benefit from all that America has to offer – millions of customers; nearly $1 billion in federal government contracts; an educated workforce; good transportation systems; and strong financial and drug safety systems. Not much will change, except that Pfizer just won’t have to pay its share of the cost for most of this.
If Pfizer is successful in claiming foreign citizenship, it will likely avoid paying U.S. taxes on about $140 billion in profits it has stashed offshore.[i]
But, the Pfizer tax dodge is not a done deal. It still requires the approval of federal regulators and Pfizer’s shareholders, which should take months. Congress still has time to close this loophole and stop the tax dodge in its tracks by passing the Stop Corporate Inversions Act.
What’s the real problem with our corporate tax code? It’s not that taxes are far too high for giant corporations, as the lobbyists claim. No, it’s that the tax code is so riddled with giveaways and loopholes for the big guys that these days, the revenue generated from corporate taxes is far too low.
People like you have to pay your fair share of taxes. So do small businesses that don’t have armies of lawyers to help them stash their money in the Cayman Islands – or magically move their corporate citizenship to Ireland.
It’s time to reform the tax code -- and one important step is closing this inversion loophole.
The American pharmaceutical giant Pfizer is merging with Allergan in order to shift its tax address offshore to Ireland and avoid paying its fair share of taxes here at home.
By moving its tax address (but not its headquarters and employees) to a tax haven, Pfizer will likely avoid paying the U.S. taxes it owes on about $140 billion in profits it has stashed offshore. That will cost us tens of billions of dollars in lost revenue – money that is needed to maintain critical services here at home. But we can put a stop to it NOW!
Demand that Congress pass the Stop Corporate Inversions Act, which would:
- Stop an American company from deserting the United States by simply changing its corporate address to a tax haven.
- Require that a company that has its headquarters in America pay its fair share of U.S. taxes.
- Require a company whose majority of shareholders are American to be considered American so that it pays its fair share of U.S. taxes.
Call on Congress today to stop Pfizer from deserting American taxpayers and to ensure that it pays its fair share of taxes.
Please, stand with me and call on Congress to pass the Stop Corporate Inversions Act today.
Together, we can stand up to the powerful interests and reform the tax code in the right way -- by making big corporations pay their fair share, by leveling the playing field between small business and big business, by promoting investment in jobs here in the U.S., and by not rewarding companies that shift jobs and profits overseas.
Thank you for being a part of this,
Elizabeth Warren
Americans for Tax Fairness (ATF) is a diverse campaign of national, state and local organizations united in support of a tax system that works for all Americans. It has come together based on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. This requires big corporations and the wealthy to pay their fair share in taxes, not to live by their own set of rules.
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