Margaret Thatcher famously observed that the problem with socialism is that eventually you run out of other people’s money to spend. Before things reach that point, the other people start running out on socialism. Get ready to bid farewell to one of America’s great companies, Pfizer, which is working on a deal that will help it escape America’s economy-crushing corporate tax burden – the highest in the world.
Pfizer is trying to buy the British drug company AstraZeneca. Some tough bargaining is currently in process, with Pfizer making a few lowball offers that AstraZeneca rebuffed. Sooner or later, they’ll hit on an agreeable price. And when that happens, Obamanomics will ensure there is absolutely zero chance the new mega-company will remain based in America.
Reuters mentions that the deal would have “significant cost and tax savings” for Pfizer, in addition to the more healthy reasons for such a corporate merger, such as acquiring AstraZeneca’s valuable product lines. Pfizer has made such acquisitions domestically in the past, but now it has concluded it’s “too difficult to pursue big deals domestically while being on the hook for higher U.S. tax rates.”
Later, Reuters adds that it makes sense for Pfizer to buy a foreign company because “it has tens of billions of dollars accumulated through foreign subsidiaries, which, if repatriated, would be be heavily taxed.” So all of that money will be kept safely out of America, where the Democrat Party can’t get it.
So the rest of Pfizer is going to decamp for that tax shelter:
In addition to using offshore cash, buying AstraZeneca would be tax-efficient since Pfizer could redomicile to Britain and enjoy lower tax rates, thanks to attractive incentives to companies that manufacture and hold patents in the country.
Pfizer envisages combining the two drugmakers under a new UK-incorporated holding company, although the head office and stock market listing would remain in New York. But the suggested deal has triggered worries about jobs in Britain’s drug sector, viewed as a key industry by the government.
All that we’ll have left is the Wall Street part of the company. Everything else will head for greener pastures that save the operation billions of dollars in taxes. Smart play, and other companies are sure to follow suit as the Obamanomic death spiral of the American economy intensifies. It’s important to get out before the collectivists start building walls to keep you in.