Pfizer
is one of those biggest companies that are running for freedom. The
pharmaceutical company wishes to become the top most British pharmaceutical
company by getting (acquiring) its archrival AstraZeneca. This deal is yet no
finalized but despite the geographical issues AstraZeneca is an attractive
offer due to the drug discourse. Pfizer is more focused on their UK market for
now. They want to trade it on New York Stock Exchange headquartered in New
York. So the human resource would generally stay the same but structure would
change.
People
are not at all satisfied by the current corporate tax regime they not only
consider it to be foolish but also self-defeating. The New York times reported
an analysis by Sen. Charles Grassley of the R-Iowa that "Until we can
reform out tax code so we have a more globally competitive system, businesses
will seek ways to limit their taxes in the United States in favor of foreign
tax systems," The New York Times reported.
Whereas
some people including President Barrack Obama consider it to be an incentive in
order to acquire more taxes. The strategy is fairly simple, if revenues cannot
be obtained from many organizations then target a few that can generate
equally.
By
increasing the tax rates individually only complicates the problem even
further. It is like a double bargain, if Pfizer stock seeks to acquire
a company that pays $1.25 worth of dividends then the company itself should
earn $3 of profit because half the amount would simply go down the drain under
the banner of taxes. So in a nutshell the company after all the taxes gets less
than half of the profit making it a useless deal for the company.
According
to recent news American policies stop the companies to switch their business
somewhere else leaving them helpless and frustrated since there is hardly any
room for growth left. Thus organizations like Pfizer find it better to switch
and leave Washington before it gets late for them. Survival has become
difficult for big companies so imagine the state of those that are driving on
low profits.
This
is a very crucial time for American government as companies as big as Pfizer
want to quit and merge in order to escape the tax bombardment then what future
lies for others? The policies need to be made flexible if the President doesn’t
want to dent the economy.
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