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I need help with this article and answering the questions provided below. IT WOULD SUBMITTED THROUGH TURN IT IN. DO NOTPLAGIARIZED! I need ameaningfulresponse more
I need help with this article and answering the questions provided below. IT WOULD SUBMITTED THROUGH TURN IT IN. DO NOTPLAGIARIZED!
I need ameaningfulresponse more than 700 words not including references. Thank you!
The WSJ announced earlier last week that US company Pfizer pharmaceuticals was in talks with Ireland's Allergen to pursue a $100 billion takeover that would result in a tax inversion and result in lowering the company's corporate taxes. Other US companies have also been implementing tax inversions recently. For example last year a tax inversion occurred when Burger King relocated their corporate headquarters from Miami, FL to Canada. See Miami's own Burger King will be merging with Tim Horton's 1. What is a tax inversion? 2. What does a US company have to gain by implementing a tax inversion? 3. Is this a form of tax avoidance or tax evasion? Explain why. 4. What are the ramifications of these tax inversions for the US and cities like Miami? A thorough and complete response will provide full points. A brief response (less than 600 words not including references) or not meaningful will provide half points. Please use spellcheck and use correct grammar in your article just as you would when writing a memo for a client or supervisor. Your Turn It In similarity % should be less than 15%. Taxes Drive Potential Merger of Pfizer, Allergan Pfizer in early talks to acquire Ireland's Allergan, thrusting drug maker into rancorous debate over corporate taxes data-module-name="article.app/lib/module/articleHeadline" articleBody16u Drug makers Pfizer and Allergan have confirmed they are in talks for a possible merger, in what could be the latest deal in year marked by major mergers and acquisitions. By LIZ HOFFMAN, RICHARD RUBIN and JONATHAN D. ROCKOFF Updated Oct. 29, 2015 9:19 p.m. ET [if ! lte IE 8] 109 COMMENTS [endif] Pfizer Inc. is pursuing what could be the biggest overseas takeover to lower U.S. corporate tax liability, showing that efforts in Washington to stem such deals have amounted to little. Company officials confirmed Thursday a Wall Street Journal report that it was in early talks to acquire Ireland's Allergan PLC, a $100 billion-plus pursuit that thrusts Pfizer, the maker of Advil and Viagra, into the rancorous debate over corporate taxes. It isn't clear what terms New York-based Pfizer has in mind, but the deal could be structured as a so-called inversion, in which a U.S. company buys a smaller foreign rival to move its legal home to a lower-tax jurisdiction abroad. American firms have seized on these transactions, drawing a regulatory crackdown last year and widespread political opposition. Pfizer Chief Executive Ian Read was unapologetic about his desire to reduce Pfizer's tax rate, saying Thursday that U.S. corporate tax rates have put the company at a disadvantage to its foreign rivals. RELATED Pfizer CEO Says U.S. Tax Regime Is Disadvantageous Heard on the Street: Botox Maker Puts Smile on Pfizer's Face Pfizer, Allergan Begin Deal Talks Government Curbs Don't Stop Tax-Driven Mergers (Sept. 21) \"We're fighting with one hand tied behind our back,\" Mr. Read said in an interview. While declining to comment on the Allergan talks, he said Pfizer was \"doing what we need to do to ensure that we can continue to innovate.\" Such a takeover would create a pharmaceutical colossus, with a market value likely exceeding $300 billion. It would rank as one of the largest corporate mergers ever and push this year's deal-making further into record territory. Pfizer's pursuit places it squarely at the center of an intensifying debate over the U.S. corporate tax rates, among the highest in the world. It is the clearest sign yet that efforts by regulators to discourage these inversionsand by politicians to stigmatize them have fallen short. The Treasury Department announced a plan a year ago to make these deals less attractive, mostly by limiting access to overseas cash. Some inversions faltered AbbVie Inc., for example, abandoned its takeover of Shire PLC but the pace is now nearly back to where it was. Lawmakers and candidates in both parties want to reduce the tax advantages of incorporating abroad, but they disagree on how to do it. Republicans support a revamp of the tax system that includes lowering the corporate rate. Democrats, meanwhile, favor tougher rules that would stop U.S. companies from pursuing these deals to lower their tax liability. Require.js from CDN Blocking but should be browser cached. Created with Highstock 2.1.8 March 31 4:00 p.m., ET $268.03 DAILY CHANGE $6.91 2.51% Allergan Share Price in 2015 Jan. 4 Feb. 1 Feb. 29 March 28 $260 $270 $280 $290 $300 $310 Source: WSJ Market Data Group 03/28/2016 US:AGN$276.0100 On the campaign trail, Republican presidential hopefuls Jeb Bush and Donald Trump have expressed support for lowering the corporate tax rate, which they say would reduce the incentives to move abroad. Democratic frontrunner Hillary Clinton is \"committed to cracking down\" on the inversion deals, a spokesman said Thursday. Last week, billionaire investor Carl Icahn pledged $150 million to a politicalaction committee that would lobby to reduce taxes on corporate profits earned overseas and support legislation to block inversions. Rep. Kevin Brady, a Texas Republican who is running for chairman of the House Ways and Means Committee, said Thursday that major changes were unlikely until at least 2017. \"I want to make sure all our companies are no longer uncompetitive when we compete around the world for profits, for sales and for contracts,\" Mr. Brady said on a taping of C SPAN's \"Newsmakers.\" Companies, meantime, are on the move. At least eight firms, including fertilizer maker CF Industries Holdings Inc. and softdrink bottler CocaCola Enterprises Inc., have pursued inversions in the past year, compared with 11 in the prior year. Many American companies feel \"backed in the corner,\" Xerox Corp. Chief Executive Ursula Burns told President Barack Obama last month at a meeting of business leaders in Washington. The pressure is particularly acute in the pharmaceutical sector, where many of the largest players are based in lowertax countries: 17 of the 25 biggest drug companies by market value are foreign, and they paid an average 17% tax rate last year versus 24% for the U.S. companies, according to FactSet. Mr. Read said Pfizer's more lightly taxed foreign rivals can spend more on research. [if ! lte IE 8] ENLARGE [endif] Pfizer's tax rate was 25.5% in 2014, versus the 4.8% paid by Actavis, which changed its name to Allergan after the two companies combined earlier this year. Trimming that rate to 15%, for example, would save nearly $2 billion in taxes, based on the profit Pfizer expects to post this year. Another lure of moving abroad is access to cash trapped overseas. Pfizer, like many of its peers, makes much of its money abroad and keeps it there, taxfree but largely off limits. Pfizer had more than $30 billion in cash and similar investments as of June 30, \"significant portions\" of which are held outside the U.S., according to a regulatory filing. If Allergan's shareholders end up owning more than 40% of the combined company, Pfizer could use that cash to help fund the transaction and for other purposes. Last year, Mr. Read tried to buy Londonbased AstraZeneca PLC for roughly $120 billion. That deal fizzled, leaving Pfizer in search of a merger partner to lower its taxes and invigorate its product pipeline. Allergan offers both: A string of big deals has put CEO Brent Saunders atop a $100 billionplus giant best known for such aesthetic drugs as wrinklefighter Botox and eyelash lengthener Latisse. Write to Liz Hoffman at liz.hoffman@wsj.com and Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com Corrections & Amplifications: Pfizer Chief Executive Ian Read said that under the U.S. corporate tax code, Pfizer is competing against foreign companies \"with one hand tied behind our back.\" An earlier version of this story misquoted him as saying \"with one hand tied behind my back.\" (Oct. 29)Step by Step Solution
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