Congress Vows To Keep Erectile Dysfunction In America

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man blog,

I have to start by telling you that I have absolutely no love for big pharmaceutical companies.

Can't sleep?  Sleep too much? Stressed out? Need energy? Too much energy? Too fat? They've got a pill for all of that.

Forget about living a healthy lifestyle. They've helped turn practically the entirety of western civilization into a bunch of pill-popping drug addicts who focus on treating symptoms rather than addressing the underlying root cause of disease.

All that being said, I am reminded of a quote by Evelyn Beatrice Hall; in her biography of Voltaire, Ms. Hall wrote "I disapprove of what you say, but I will defend to the death your right to say it."

I disapprove of much of the way the big pharma industry operates. But I still think they should be free to conduct their business.

But as I was flying in to Santiago from Dallas overnight, I read a troubling story in the Financial Times about Pfizer's bid to take over British drug company AstraZeneca.

One of the prime reasons that Pfizer is so interested is because the takeover would afford them the opportunity to redomicile the business in England.

Why do this? Because right now they're paying US corporate tax... which is substantially higher than in the UK.

So by moving the business abroad, the company would save shareholders billions.

Uncle Sam has a big problem with this. And Congress is jumping all over Pfizer to block the deal... even going so far as to propose RETROACTIVE legislation.

In other words, they're willing to go back in time to kill the deal before it even gets started.

(I'm reminded of the first Terminator movie when I think about this approach...)

The FT quotes Oregon Senator Ron Wyden as saying "I don't approach retroactivity in legislation lightly, but corporations must understand that they won't profit from abandoning the US..."

Ummm, actually that's the whole point, Senator. The tax situation is so onerous that people do profit when they leave the US. That's WHY people leave the US. Duh.

But like the drug companies themselves, Congress isn't looking at the root cause. They're treating the symptom.

In this case, the symptom is American businesses heading overseas to escape the highest tax regime in the developed world.

The federal corporate tax rate alone can be as high as 38%, and that's before including state corporate taxes, or personal taxes on the dividend distributions to shareholders.

And that is precisely the underlying cause: everyone is taxed to the hilt so that the government can continue squandering it all and indebting future generations.

Anyone with the means can see the writing on the wall and is opting out of this system.

Bear in mind that what Pfizer is proposing is completely legal. There are no laws that prevent the company from acquiring another firm and moving the headquarters abroad.
 
None of this seems to matter.

'Cuz hey, why bother making the tax code more competitive and cleaning up the balance sheet when you can just threaten people at gunpoint?

As much as I dislike the industry, preventing Pfizer from leaving is a form of financial slavery. At a minimum, it's a form of financial repression and capital controls.

And this is something that should concern everyone.

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replaceme's picture

Fish gotta swim, bird gotta fly, banana republic gotta rule via fiat.  With an iron fiat fist.

Gringo Viejo's picture

I got your "root cause"...RIGHT HERE!

NotApplicable's picture

Wait a minute... you mean, now I should be concerned?

cifo's picture

I agree. Keep it. We (guys) are going to need viagra at some point down the road.

TeamDepends's picture

That would be a Pink Delicious Apple?

N2OJoe's picture

They're all pink on the inside.

Vampyroteuthis infernalis's picture

The US gov't has been encouraging corps to move production overseas for cheap labor and manufacturing. Pfizer is just taking it to the final conclusion, move the corporate headquarters. What!? Screwing the average folk is ok, but now they want to move away and take money from our Congresscritters. The nerve! Hypocrisy has no end.

Mesquite's picture

Was ok, for decades... Now, they start to wake up... And want to close the barn door...After most of the horses are gone...Not that I have an answer... Just an observation that they are a few decades late in waking up... Course they were getting their 'brown envelopes'... So, it was ok... I remember in the 60's when consumer electronics started to migrate off shore...Hmmm 

Timmay's picture

This is a pipe dream, where on Earth can any corp $ hide when the shit hits the fan? The Governments will take all of it, one way or another.

Ignatius's picture

"As much as I dislike the industry, preventing Pfizer from leaving is a form of financial slavery."

Pack a suitcase full of hundreds of thousands in cash or gold and try to leave the country.  They told us "corporations are people" didn't they?  Next time you meet a corporation walkin' down the street put your hand out "Welcome to hell, Reverend."

Translational Lift's picture

The USSofA has been making it more and more difficult for people to leave this country and now because they can't tax corps, NO obamma....corps as in corporations NOT corps as in military, enough they are going to try to change the laws retroactively!!!!!!

What a fucked-up bunch of pikers masquerading as representatives.........

HEY....how about retroactively changing the tax law so I only have to pay 5%!!

williambanzai7's picture

Actually, Pfizer is not going anywhere. Redomiciling is a corporate paper shuffling routine. A further elaboration of the Double Irish.

Why don't they just declare that all corporations are tax exempt? Because that would put lots of lawyers and former Congressional staffers out of business.

As for Pfizer, their HQ will remain in NYC.

This is just an example of how the Lords get to flee while the fleas continue to foot the bills. And the noise on Capital Hill is merely pre-election dick swinging.

Anyone who thinks Congress will act on this has to be totally naive. This would have as much chance of succeeding as taxing the carry of private equity firms. How is that making out?

Now go and eat your Viagras...

0b1knob's picture

Viagra is for wimps.

Cialis-Four hour boner GUARANTEED or TRIPLE your money back.

CheapBastard's picture

Dont need Viagra or Cialis or any chemical pollutants in your body when you have these nice friends from Japan:

 

http://www.fantasydoll.com.au/

 

They have a uniquely quiet Beauty and charming attitude, as well as being very cooperative.

TeamDepends's picture

A boner that burns twice as bright burns half as long....

jimmytorpedo's picture

The boot on your throat just moved to your penis.

How's it feel now?

sodbuster's picture

Well, some folks are in to S&M- I suppose they like it just fine. But......what's the safe word?

sodbuster's picture

Actually, cheapbastard, that doll looks more active than my wife!!!

ParkAveFlasher's picture

Excellent WB7.  "European in name only" ... while all the know-how and human capital remains right here. 

ZerOhead's picture

Nothing a little patent protection reduction modification combined with crushing import duties couldn't slove...

11b40's picture

Bingo, Zero.

The real crime here is these corporate fucks have sucked us almost dry, and now want to scoot off with no responsibility.  I would really like to know what their effective tax rates are.  We should have made it very painful for companies to export jobs long ago and stopped all this shit at the border the way the country operated for the first 200 years.  Now, any B.O.D. electing to pull this stunt should be stripped of citizenship and booted over to their new country....good ridance.  And all you New World Order Free Traders can kiss my ass.  I don't need any lectures about what happened in the 30's, either.  The decline of America is sickening, and it could have been prevented.  There is a reason doors and gates have locks.  If you leave valuables unprotected, they will be stolen. Forcing American business to compete with foreign government subsidized companies is simply selling out America.

GooseShtepping Moron's picture

Too many limp dicks in Congress need Pfizer to stay.

Oracle 911's picture

Oh boy.

Well now I  fell relived for not being  born in USA and not applying for visa.

viahj's picture

the entire planet is downwind from the coming USD meltdown.

NotApplicable's picture

Luckily nobody is born in the USA, as it's a body politic, rather than a place.

Sadly though, I think I'm the only person who knows this.

So... whaddaya do?

pods's picture

So Bruce was lying?

What about when they issue your birth certificate (USA not Kenyan)?  You could say that is your birth into the USA (corp).

pods

youngman's picture

It shows you how the politicians think though...you may think its yours...but they want it all...and they will take it all in the end....right before the crash...as a drowning rat will try to save itself first..by killing you

viahj's picture

the doors are being chained.  once the .gov goes to battle against the corporations, the times are desparate.  they are going after the off shore cash as well. 

Relentless101's picture

Why compete when you can just block people from doing anything you don't want? This strategy is historically not great for future prosperity.

ebworthen's picture

CONgress will find a way to allow the merger; the objections are part of the theater.

CONgress loves monopolies, just look at the media mergers and consolidation of the MSM.

No doubt there are wire transfers and Gold bars being made behind the scenes to grease some palms.

Or promises of serving on the Board of Directors and flats in London for when the "honorable" Senators and CONgress critters retire.

saltedGold's picture

"Why do this? Because right now they're paying US corporate tax... which is substantially higher than in the UK."

This confuses the hell out of me.  I always hear that big corps in the US don't pay taxes, etc, etc, but here they want to leave for a lower tax rate.  Any explanation appreciated in advance.

NotApplicable's picture

Every industry has its own loopholes.

August's picture

You sure wouldn't want a uniform tax code that applied equally to all players, that would kill lobbying and back-scratching as a lucrative industry, cripple the DC economy, and lead to massive lay-offs in our food, beverage, recreational drug and escort industries.

intotheblack's picture

LGBYF and learn that U.S. corprations are taxed heavily, yo.

KPMG's Corporate Income Tax Rate Table:

The corporate income tax rate [In the U.S.] is approximately 40%. The marginal federal corporate income tax rate on the highest income bracket of corporations (currently above USD 18,333,333) is 35%. State and local governments may also impose income taxes ranging from 0% to 12%, the top marginal rates averaging approximately 7.5%. A corporation may deduct its state and local income tax expense when computing its federal taxable income, generally resulting in a net effective rate of approximately 40%. The effective rate may vary significantly depending on the locality in which a corporation conducts business. The United States also has a parallel alternative minimum tax (AMT) system, which is generally characterized by a lower tax rate (20%) but a broader tax base.

In the U.K. the rate is 21%.

40% is confiscatory IMHO. But it keeps prices up, right? Not deflationary I guess. 

11b40's picture

Oh, so we can expect big price decreases if the merger is allowed?

 

Hahahahahahahahahahaha

KPMG is preaching their book.  I bet Phizer's EFFECTIVE tax rate is somewhere around the same as G.E. --- effectively zero.  They have probably figured out how to get subsidies from England and probably with the help of KPMG.

Encroaching Darkness's picture

Am I the only one who remembers that "ex post facto" legislation is forbidden in the Constitution? Of course, Ron Wyden has never read the Constitution / thinks he can override it / has no idea it exists, let alone what it prescribes and proscribes, but what the hell!

Fascist companies, fascist legislators, .....

the not so mighty maximiza's picture

JUST USE GINSING, FUCK DC

Rainman's picture

If I was poisoning as many humans as these coksuckerz I'd get out of the country too.

Jack Sheet's picture

Pfzer has axed 50,000 jobs since 2005--during a period when it also bought up Wyeth. They will slash more AZ jobs if the merger goes through. Their pipeline is fucked and they need to leech off AZ's which is not much better.

all-priced-in's picture

Pfizer should hire Joe Biden's Son - or maybe Michelle Obama -

 

 

 

  

Bastiat's picture

. . . Michelle as the Viagra antidote?

alien-IQ's picture

"A form of financial slavery"? Are you fucking kidding me?

jmcadg's picture

Interesting. The UK rub on this take over is Pfizer is some kind of asset stripper bunch of fucks.

Probably not far from the truth!

intotheblack's picture

I know, right? They're really not happy about it. Pfizer historically liquidates its acquisitions.