U.S. Representative Jan Schakowsky (D-IL) recently released a statement regarding the proposed Pfizer-Allergan merger.
Schakowsky shared that Pfizer has received more than $5 billion in government contracts, earns more than $1 billion annually from Medicare and Medicaid, and receives additional funding through the research conducted by the National Institutes of Health (NIH).
By merging with Allergan, Pfizer will pay nearly $2 billion less in federal taxes while reducing competition and potentially raising prices for effective, life-saving drugs. As Schakowsky pointed out, the corporation's tax rate in 2015 was 24 percent, while an individual is taxed at a rate of at least 25 percent for every dollar earned over $37,450.
"This behavior needs to stop because Americans deserve better," Schakowsky said. "First, the proposed merger of Pfizer and Allergan should be rejected by the Federal Trade Commission. Second, we need to put an end to Pfizer and others moving a few corporate offices overseas in order to avoid paying U.S. taxes. Speaker Ryan should bring H.R. 415, the Stop Corporate Inversions Act, to the floor without delay so we can stop Pfizer and others from benefiting from all our country has to offer while simultaneously shirking their tax bills."
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