Americans are more cynical than ever about politics, and with ample cause. Witness this week’s denunciations of Pfizer Inc. by politicians for trying to survive competitively under the tax laws these same politicians wrote.
On Monday the New York-based drug giant finally announced its long-mooted merger with Ireland’s Allergan in a roughly $160 billion deal that is the largest tie-up in a record year for corporate deal-making. The merger will, among other things, make it easier for the new Ireland-based Pfizer PLC to bring profits generated overseas back to the U.S. But the same politicians who continue to tilt the playing field against U.S. companies are blasting Pfizer for trying to do right by its shareholders, workers and customers.
“For too long, powerful corporations have exploited loopholes that allow them to hide earnings abroad to lower their taxes,” thundered Hillary Clinton, that epic collector of corporate cash tribute. “Now Pfizer is trying to reduce its tax bill even further.”
Even further? Its effective tax rate of 25% is among the highest in its industry anywhere in the world, hence the need to move the legal address and endure grief from politicians like Mrs. Clinton. Senate Democratic leaders Harry Reid and Chuck Schumer also denounced Pfizer for abiding by the tax laws they’ve done so much to write and preserve.