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COMPANY SEEKS TO AVOID ONEROUS CORPORATE TAX … 

This website has no love for Big Pharma (a.k.a. large corporate pharmaceutical firms). We think excessive pill-popping – and the government subsidization thereof – is one of the main reasons this country is going under.

Seriously … we never deal with stuff anymore in this country, we just take a friggin’ pill.

Anyway, drug manufacturer Pfizer has made billions off of our country’s unhealthy pharmaceutical dependency – much of it coming from government. In fact the company’s latest annual report makes its own “dependence” on taxpayer subsidies abundantly clear …

“Any significant spending reductions affecting Medicare, Medicaid or other publicly funded or subsidized health programs … could have an adverse impact on our results of operations,” the report stated.

How’s that for a “Pfree” market, people …

Now the New York-based giant – which produces medications like Viagra and Lipitor – is trying to buy British drugmaker AstraZeneca for more than $100 billion. Except this attempted acquisition isn’t just about market share – it’s about taxes. Specifically, Pfizer is hoping to avoid excessively high American corporate taxes by “reincorporating” in England – a process known as “inversion.”

Such a move would save its shareholders billions of dollars.

As part of Pfizer’s efforts to convince British leaders to approve the sale, the company is promising to maintain a certain level of jobs in Great Britain (where it currently employs nearly 7,000 people). Obviously that means fewer jobs in America – in addition to that disappearing tax base.

American lawmakers are furious – and have proposed retroactive punishments for Pfizer in the event the company decides to hop the pond.

“Corporations must understand that they won’t profit from abandoning the U.S.,” liberal Oregon Sen. Ron Wyden said.

Wow …

Think about that statement for a moment … here we have a U.S. Senator threatening to retroactively punish a company for attempting to escape America’s onerous tax system.

“As much as I dislike the industry, preventing Pfizer from leaving is a form of financial slavery,” writes Simon Black of The Sovereign Man. “At a minimum, it’s a form of financial repression and capital controls.”

Indeed …

This website supports corporate tax relief. We don’t think it is quite as essential to job growth and expanded consumerism as individual income tax relief (i.e. cutting the tax that’s paid by the vast majority of businesses in America) – but the fact remains the United States currently has the highest corporate tax rate in the industrialized world, averaging 39.1 percent.

Don’t believe us? Take a look at this chart …

(Click to enlarge)

tax rates

(Chart via Tax Foundation)

Again, we wouldn’t place corporate tax relief ahead of individual income tax relief on a list of job-creating, economy-expanding priorities, but it is on the list … even for a company like Pfizer.

More to the point, threatening a company – any company – with retroactive consequences for deciding to flee a repressive tax system is the latest mile marker in America’s ongoing descent into Orwellian hell.

Because if they can do it to a company like Pfizer, they can do it to you …