Enough is Enough': Sanders Demands Treasury Block Pfizer Tax Dodging Deal

[Benton]

(03-22-2016, 09:25 AM)michaelsean Wrote: So what do you do to determine which country is someone's base?  Pfizer buys Allergen and says, OK we are an Irish country.  What is the deciding factor that says, "No you are not.  You pay here."  Sales?  Origination?  Or where your headquarters are located maybe?

In this instance, the bulk (all?) of the money Pfizer owes is deferred taxes. Money it owed and was allowed to hold off paying (usually to offset the profits with future liabilities). So it's not an issue of what will be the base, it's an issue of they already had a base (and all the legal benefits that comes from being based in the U.S.) and profited from it.

My problem is, deferment is great for helping companies to right out rough spots. You have some boom years, great, you hold off on the taxes and it helps offset your bust years. But if we're going to let businesses essentially pay nothing or negative taxes (i.e., get more in benefits than they pay), the deferments have to be reduced or capped.