Another Billion-Dollar US Company Moves Across The Pond

[xchrom]

http://www.businessinsider.com/pharmaceutical-tax-inversion-deals-2014-7



There has been another tax inversion.

Earlier this morning, AbbVie, which is based in Illinois, announced a deal to acquire Ireland-based Shire in a $53 billion deal that will allow the drugmaker to move its tax base to Jersey, an island in the English Channel.

A "tax inversion" is a deal in which a company, say one based in the U.S., acquires another based in Ireland and moves its tax base to pay a lower corporate tax rate. U.S. lawmakers don't like this, because they no longer get a company's tax revenue.

In 2013, AbbVie's income tax expense was $1.2 billion.

The AbbVie-Shire deal is the latest in a series of moves by companies in the pharmaceutical industry to shift their corporate domiciles to enjoy more favorable tax treatments.



Read more: http://www.businessinsider.com/pharmaceutical-tax-inversion-deals-2014-7#ixzz380HgGEny

[Ilsa]

1. Bastards.

But I bet they'll continue using our infrastructure, including college graduates.

[postulater]

2. So tax their drugs.

[TBF]

3. ^^ this

One of the problems we have in this country is that our main industry is war. We spend more money on defense than anyone else and then spend our time defending 1/2 the world. It's very frustrating because the corporate tax rate here has steadily declined and yet we still lose companies.

My vote would be that we scale back on our military, close overseas bases, bring our soldiers home to work on infrastructure. Refuse to fight everyone's battles for them. Then we'll see if people are so willing to give up the freedoms they have under our bill of rights by moving to other countries. Right now they can have their cake and eat it too. I wouldn't make it so easy for them.

[postulater]

5. We have two votes now.

Your's and mine.

[NM_Birder]

4. until the import/export tax structure changes

this will continue. The US tax structure makes it more advantageous to move overseas, and business does it, it's a good business move, because of bad trade policy.

"we need to bring back the good paying jobs" ......... is all lip service, knowing the tax code offers more profits to companies that move overseas.

[kentuck]

6. There's nothing Congress can do....

because they don't have the will or the backbone. And their contributions may be cut off.