Pfizer, the American pharmaceutical giant, has decided to jump ship and buy the British pharmaceutical firm AstraZeneca. The reason is that the two companies’ nature is complementary, making it a cost-cutting deal, but also because Pfizer is planning to become a subsidiary to a new UK holding company, which means less taxes. This ‘tax inversion,’ as it’s known, has sent Wall Street and Congress spinning — mostly Congress, who are pulling their hair out, with no idea what to do. Two of them came on TV to talk about it, and they both talked nonsense. On the one hand the Democrat had the gall to claim that the international tax system is broken, and that it should be fixed asap, which is code for making all countries raise their taxes to match US rates, or for all countries to coordinate their taxation schemes, upping and lowering them in tandem, which is nothing short of creating a tax cartel, which is as disturbing as it is stupid, because it would never work. To make matters worse, the Republican compounded the issue by delivering a mini-lecture on the need to reduce taxes through strident effort (?!) instead of taking the opportunity to slam the Democrat for entertaining an Orwellian notion.
Watch this story unfold over the next 28 days.
Click here for more.