Please disable your Ad Blocker in order to interact with the site.

Larry David impersonator, Senator from Vermont, and Democratic Party candidate for president Bernie Sanders is having a conniption over the Allergan/Pfizer deal.  Pfizer said it would buy Botox maker Allergan in a record-breaking deal worth $160 billion to cut its U.S. tax bill by moving its headquarters to Ireland.

Reuters is reporting that Sanders is urging the Obama administration to block the deal.

“The Pfizer-Allergan merger would be a disaster for American consumers who already pay the highest prices in the world for prescription drugs,”

Despite Bernie Sanders’ claim logic dictates that if the merger does anything to drug prices it would drive them downward.  Besides the usual economies created by merging companies, the move to Ireland will serve to drive down Pfizer’s taxes. In fact the tax aspect of the deal has been seen as critical. The U.S. corporate tax rate of 35 percent is among the world’s highest, while Ireland’s is just 12.5 percent. Allergan, itself is the product of a tax-lowering inversion deal, and has a roughly 15% tax rate.

Fox Business reports:

The U.S. Treasury, concerned about losing tax revenue, has been taking steps to clamp down on tax inversion deals, but experts have said these moves will do little to prevent Pfizer from shifting its domicile.

It’s time for liberals to wake up and smell the hummus–Corporate Taxes are too high and business is over regulated.

Being an international mega company Pfizer gets to vote on the United States corporate tax rate…with its feet!

So while President Obama, Bernie Sanders and their fellow progressives play class warfare the United States is losing jobs to other countries. Just look at the chart below–it represents the corporate tax rates by country per KPMG.  The United States (in red) is the second highest, if you look at the right handed column near the bottom (in green) is Ireland.  Heck China (25%) and Russia (20%) have lower tax rates than ours.

Why would any corporation stay in the U.S. when they can merge with a company from Sweden cut their taxes almost in half and possibly sponsor the Swedish Bikini team?

Swedish Bikini Team

Swedish Bikini Team

Thanks to higher taxes and growing regulation, the United States is no longer the easiest place in the world to operate a business according to the rankings prepared by the world bank in 2009 the U.S. was ranked third in their analysis of the most business friendly countries, the June 2015 report ranked  America seventh.  Countries are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.

Based on the high taxes and the growing regulatory environment can you blame companies like Pfizer for wanting to move overseas?

If Bernie Sanders or any other liberal wants to reverse the trend of companies voting with their feet and moving out of the U.S. they have to make America more business friendly.

Tax Rates By Country Per KPMG Tax Rates By Country Per KPMG
LOCATION 2015 (%) LOCATION 2015 (%)
United Arab Emirates 55 Uruguay 25
United States 40 St Maarten 24.5
Argentina 35 Korea, Republic of 24.2
Malta 35 Denmark 23.5
Sudan 35 Algeria 23
Zambia 35 Chile 22.5
India 34.61 Botswana 22
Brazil 34 Ecuador 22
Venezuela 34 Slovakia 22
Belgium 33.99 Sweden 22
France 33.33 Syria 22
Japan 33.06 Vietnam 22
Cameroon 33 Portugal 21
Namibia 33 Afghanistan 20
Pakistan 33 Armenia 20
Mozambique 32 Cambodia 20
Italy 31.4 Croatia 20
Angola 30 Estonia 20
Australia 30 Fiji 20
Costa Rica 30 Finland 20
El Salvador 30 Iceland 20
Honduras 30 Jersey (Channel Islands) 20
Kenya 30 Jordan 20
Malawi 30 Kazakhstan 20
Mexico 30 Libya 20
Morocco 30 Russia 20
Nigeria 30 Saudi Arabia 20
Papua New Guinea 30 Thailand 20
Peru 30 Turkey 20
Philippines 30 United Kingdom 20
Sierra Leone 30 Yemen 20
Tanzania 30 Czech Republic 19
Uganda 30 Hungary 19
Germany 29.65 Poland 19
Luxembourg 29.22 Belarus 18
Aruba 28 Ukraine 18
New Zealand 28 Switzerland 17.92
South Africa 28 Singapore 17
Spain 28 Slovenia 17
Sri Lanka 28 Taiwan 17
Bangladesh 27.5 Hong Kong SAR 16.5
Dominican Republic 27 Romania 16
Norway 27 Albania 15
Samoa 27 Georgia 15
Canada 26.5 Iraq 15
Israel 26.5 Kuwait 15
Greece 26 Latvia 15
Austria 25 Lebanon 15
Barbados 25 Lithuania 15
Bolivia 25 Mauritius 15
China 25 Serbia 15
Colombia 25 Cyprus 12.5
Curacao 25 Ireland 12.5
Egypt 25 Liechtenstein 12.5
Ghana 25 Macau 12
Guatemala 25 Oman 12
Jamaica 25 Bosnia and Herzegovin 10
Malaysia 25 Bulgaria 10
Netherlands 25 Gibraltar 10
Panama 25 Macedonia 10
Trinidad and Tobago 25 Paraguay 10
Tunisia 25 Qatar 10
Montenegro 9

Become a Lid Insider

Sign up for our free email newsletter, and we'll make sure to keep you in the loop.

Send this to friend