Time to End Roundtripping by Big Pharma
9 days ago
- #pharmaceutical industry
- #tax avoidance
- #trade deficit
- U.S. imports of peptides and protein-based hormones from Ireland surged to $36 billion, making Ireland the second-largest goods-trade imbalance with the U.S. after China.
- Pharmaceutical companies are stockpiling profitable drugs in anticipation of tariffs, contributing to the trade deficit.
- Tax avoidance strategies, such as shifting profits to low-tax jurisdictions like Ireland, allow companies to pay lower tax rates (e.g., 10.5% GILTI rate vs. 21% U.S. rate).
- Major pharmaceutical companies like Eli Lilly and Pfizer have significantly reduced their U.S. corporate tax payments under the 2017 Tax Cuts and Jobs Act (TCJA).
- Legislation proposed by Senators Wyden, Warner, Warnock, and Welch aims to curb tax incentives that encourage profit shifting and trade deficits.
- Top U.S. companies, including Apple and Microsoft, report hundreds of billions in offshore profits, with much of the tax revenue going to foreign jurisdictions.
- The U.S. fiscal deficit and geopolitical tensions highlight the need for corporate tax reform to address revenue shortfalls.