By email@example.com (Monika Greenhow)
The withdrawal by New York-based pharma giant Pfizer of a proposed merger with Irish company Allergan could save U.S. taxpayers billions. If the merger had been completed under the Treasury Department’s old rules, Pfizer could have dodged paying $35 billion in taxes on $150 billion in overseas profits. In 2014, Treasury revised rules to make it harder for corporations to use the process called “inversion” to avoid paying taxes in the United States. The AFL-CIO recently joined more than 50 organizations that sent a letter to the Treasury calling for stiffer rules on inversion so that companies are required to pay their fair share.