Surprise! After Obama crushes tax-cheat incentive, Pfizer and Allergan call off their merger

Daily Kos Staff

Wednesday April 06, 2016 · 12:06 PM PDT

2016/04/06 · 12:06

US President Barack Obama smiles during a press conference in the briefing room of the White House in Washington, DC on December 18, 2015. Obama addressed the press before flying to San Bernardino to meet families of the victims of the December 2 attack, before continuing to Hawaii for a two-week family vacation. AFP PHOTO/ ANDREW CABALLERO-REYNOLDS / AFP / Andrew Caballero-Reynolds (Photo credit should read ANDREW CABALLERO-REYNOLDS/AFP/Getty Images) — The good news for Pfizer is that they won't have to pay to ship their sign!

Back in November, Pfizer and Allergen declared their love for one another. It was like Romeo and Juliet. They would move away to Ireland together and live alone in the bee-loud glade. Yesterday, playing the part of the Capulet and Montague patriarchs, President Obama and the Treasury Department issued a new rule that, in essence, ended Pfizer and other similar big corporations from receiving tax breaks when they leave the United States to set up ~~fake~~ shop in an offshore tax haven. Before this new rule was announced, Pfizer and Allergen were planning on getting married and dodging an estimated $32 billion U.S. taxes.

Just before Thanksgiving, Pfizer and Allergan announced that they hoped to merge in a record $160 billion deal to create a family of drugs such as Pfizer's Lyrica, Enbrel and Viagra and Allergan's Botox and Restasis.

Pfizer's Portage manufacturing plant on Portage Road is its largest, employing more than 1,800 employees. It has a taxable value of just over $300 million and contributes more than $2.9 million in taxes to Portage alone.

But Obama squashed these star-crossed lovers because he’s a meanie and today, well—today Pfizer is about $150 million lighter in the pockets.

As analysts and investors had expected, the two companies called off the record $160 billion merger early Wednesday "by mutual agreement." Pfizer cited Treasury's new regulations, issued late Monday, to make such "tax inversions" less lucrative.

[...]

Pfizer Inc., based in New York, has agreed to pay Dublin-based Allergan PLC $150 million for reimbursement of its deal-related expenses.

Don’t burst out crying for these two, they’re rich and they’re from rich families and Big Pharma companies don’t love anyone as much as they love money.

Many thousands in the Daily Kos community added their voices in what the Obama administration realized was an undeniable call to action.

If you would like, go and thank Obama for shutting down this huge tax dodge.

Surprise! After Obama crushes tax-cheat incentive, Pfizer and Allergan call off their merger

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