U.S. Senate Committee On ‘Big Pharma’s Tax’
United States Senate Finance Committee Chair Ron Wyden released an interim report entitled ‘Big Pharma Tax Avoidance’ which claims that “loopholes in the tax code have allowed AbbVie, a large multinational corporation headquartered in the United States, to further abuse tax havens and avoid paying U.S. taxes on prescription drug sales.”
A statement on the official website said, “For example, more than 75 percent of AbbVie’s 2020 sales were made to American consumers, yet just 1 percent of AbbVie’s income was reported in the United States for tax purposes.”
The island is is mentioned in the report; it claims that Bermuda, which does have a variety of taxes, is ‘zero-tax’, stating, “The Republican tax law’s international provisions created incentives for drug companies like AbbVie to minimize taxes by holding intellectual property in a zero-tax jurisdiction like Bermuda and manufacturing in another low-tax jurisdiction, like Puerto Rico or Ireland.”
Senator Wyden, a Democrat who represents Oregon, said, ““Of course, the Republican tax cuts compounded these problems, just as we predicted. It’s critical that Congress takes steps to fix this broken system, so nurses and firefighters aren’t paying higher tax rates than Big Pharma.
“Policies the Finance Committee has developed, including a minimum tax on corporate profits and reforms to the international tax system, would both get at this problem, and deliver on our promise to make corporations pay their fair share.”
