Pfizer — one of the world’s wealthiest pharmaceutical companies — recently announced that it is moving its tax address offshore so it can claim foreign citizenship and dodge taxes here at home.
Under this tax loophole, known as an “inversion,” Pfizer claims that it will become an Irish company. Its headquarters and employees will stay here in the US. The company will continue to benefit from all that America has to offer — millions of customers; nearly $1 billion in federal government contracts; an educated workforce; good transportation systems; and strong financial and drug safety systems. Not much will change, except that Pfizer just won’t have to pay its share of the cost for most of this.
If Pfizer is successful in claiming foreign citizenship, it will likely avoid paying U.S. taxes on about $140 billion in profits it has stashed offshore.1 That freeloading will cost us tens of billions of dollars in lost revenue – money that we could use to invest in education, infrastructure, or basic research. Pfizer will also dramatically slash its future tax rate by stripping future earnings out of the U.S., and every year it will dodge more taxes that it would have owed.
But, the Pfizer tax dodge is not a done deal. It still requires the approval of federal regulators and Pfizer’s shareholders, which should take months. Congress still has time to close this loophole and stop the tax dodge in its tracks by passing the Stop Corporate Inversions Act.
Stand with me, Americans for Tax Fairness Action Fund and Democracy for America and add your name as a citizen co-sponsor calling on Congress to pass the Stop Corporate Inversions Act. Let’s stop Pfizer from implementing a tax dodge of historic proportions right now.
What’s the real problem with our corporate tax code? It’s not that taxes are far too high for giant corporations, as the lobbyists claim. No, it’s that the tax code is so riddled with giveaways and loopholes for the big guys that these days, the revenue generated from corporate taxes is far too low.
People like you have to pay your fair share of taxes. So do small businesses that don’t have armies of lawyers to help them stash their money in the Cayman Islands — or magically move their corporate citizenship to Ireland.
It’s time to reform the tax code — and one important step is closing this inversion loophole.
Please, stand with me and add your name as a citizen co-sponsor calling on Congress to pass the Stop Corporate Inversions Act today.
Together, we can stand up to the powerful interests and reform the tax code in the right way — by making big corporations pay their fair share, by leveling the playing field between small business and big business, by promoting investment in jobs here in the U.S., and by not rewarding companies that shift jobs and profits overseas.
Thank you for being a part of this,