Pfizer merger stokes calls for congressional crackdown

[nitpicker]

http://thehill.com/policy/finance/261156-pfizer-merger-stokes-calls-for-congressional-crackdown

Pfizer merger stokes calls for congressional crackdown


By Naomi Jagoda - 11/24/15 12:07 AM EST

A planned merger between pharmaceutical giants Pfizer and Allergan is prompting fresh calls for congressional action to prevent companies from shielding themselves from U.S. taxes by reincorporating overseas. But an agreement on legislation curbing so-called inversions will be no easy feat in the midst of an increasingly contentious election cycle.

The $160 billion deal announced would be the largest-ever corporate inversion — a transaction by which an American company merges with a foreign company and then reincorporates overseas to reduce its tax burden.

Members of Congress from both sides of the aisle, as well as the Democratic presidential candidates and the White House, have responded to news of the planned merger by calling for legislation to clamp down on inversions.

Republicans, who control both chambers, largely favor a major overhaul that includes lower corporate tax rates that would reduce incentives for firms to move overseas in the first place. “So let's stop the political hand-wringing and get to work creating a U.S. tax code that's built for growth,” said new House Ways and Means Committee Chairman Kevin Brady (R-Texas). 

White House Press Secretary Josh Earnest, meanwhile, said it was Republicans to blame for blocking legislation on inversions. "That's what you get when you have companies that have essentially bought and paid for members of Congress."
(snip)

Meanwhile, Democratic presidential candidates are calling for corporate tax changes that would make sure that companies pay their “fair share” of taxes. These comments come after Sen. Elizabeth Warren (D-Mass.) said last week that corporate tax reform should result in a permanent increase in the share of long-term revenues paid by large corporations.
(snip)

[still_one]

1. They can say what they want, but unless they are able to pass legislation quickly enough, this is a

done deal today

[StoneCarver]

2. here's how you undo it.

Stanley tools tried this 20 years ago. The pentagon freaked out since they buy a lot of tools from Stanley. The pentagon simply said (in the name of patriotism) they would not allow foreign held companies to bid on military contracts. It killed Stanley's offshore aspirations.
Have Medicare/Medicaid simply adopt the same (in the name of patriotism) they will not reimburse for medicines or products for companies doing a majority of their business in the US and held offshore. I think this could be done with a Presidential directive. Done. They will undo the inversions immediately! Screw them at their own game.
Stonecarver