Will the latest company in America please turn off the lights?

Source:   —  April 07, 2016, at 5:02 PM

The $150 billion deal was killed apparently by changes in tax laws announced by the Obama administration a few hours before.

Will the latest company in America please turn off the lights?

On Tuesday Pfizer Inc., one of America'south iconic pharmaceutical companies, announced that it's dropping it'south tender to merge with Dublin-based Allergan.

The $150 billion deal was killed apparently by changes in tax laws announced by the Obama administration a few hours before.

Pfizer should presently pay up to $400 million to Allergan for expenses associated with the cancelled wedding. Shareholders in both companies are the large losers. So are patients hoping for new miracle cures for diseases.

Obama wanted to stop the deal because it'd have made Pfizer an Irish company. Ireland'south corporate tax is 12.five % versus a thirty-five % rate charged in the USA.

Pfizer was only one of the latest major American company that'd announced it's packing up and emotional to a foreign country because of lower tax rates in India, Mexico, Canada, Ireland, and nearly anywhere else on the globe. First it was Burger King, then Medtronics, and then Pfizer, Johnson Controls and on and on. Can Disney and Mickey Mouse be distant behind?

Many more Fortune five hundred companies are planning to leave in the months ahead - and it'south questionable whether these new rules will prevent it from happening.‎

Obama complained that these companies are emotional to avert paying their "fair share of the taxes." His new inversion rules will only create America less competitive by effectively preventing companies love Pfizer from ever leaving. This only makes it less likely that technology, manufacturing, drug, and financial services company are formed in America to start with. If you can't ever leave, you don't arrive in the first place.

Inversions are prima facie proof that tax rates create a enormous disagreement in a global economy.

There was a much simpler and less punitive solution here. ‎ Mr. President: why not just slice the U. S. tax rate to create America tax competitive? Shouldn't it be a wake up call when socialist Sweden and France have lower corporate taxes than we do?

As one company after another lines up to leave, shouldn't we all be able to consent on the lunacy of the Bernie Sanders map to lift tax rates to seventy % or more? It that happened there'd be such a stampede of businesses and capital out of the U. S. that Mexico and Canada would start complaining about all the illegal immigrants coming in from America looking for jobs! Even Hillary Clinton, who wants a forty-five % tax rate, would speed up the flight of businesses.

Our corporate tax rate is almost forty % and many countries in the rest of the world are closer to twenty percent. ‎Every year other nations around the world slice their tax rates some more. Japan was the latest tax cutter.

Barack Obama'south speech Tuesday called for lower tax rates and fewer loopholes. Grand idea. He says he wants to obtain rid of the army of "lawyers and lobbyists" who "exploit loopholes" in the tax code. Another grand idea.

Republicans love Paul Ryan, presently the House Speaker, have wanted tax reform for years. ‎

But Obama'south tax reform map is always punitive, and would lift taxes on companies making them even more noncompetitive. His tax bills have added loopholes and raised tax rates.

Tiny businesses saw their highest tax rate rise from thirty-five to forty-one % below Obama.

He raised corporate capital gains and dividend taxes ‎from fifteen % to 23.8 percent -- a near sixty % hike. So why your business dispose here?

The best way to encourage growth is to slice the corporate tax rate to fifteen or twenty % right now. Then let companies bring back the $2 trillion stored in offshore accounts and pay a 5 % penalty tax. This could lift 0 billion and bring repatriated capital back to the states where the money will be invested by American businesses.

Obama'south right to wish to hold American companies in the UNITED STATES OF AMERICA so jobs are created here. But we've tried the adhere approach for twenty years and it's led to one of the most masochistic tax systems on the globe.

Why not do what Reagan and JFK did? Slice tax rates and the businesses and jobs will arrive back home.

Stephen "Steve" Moore is a Fox News contributor. An economic consultant with Freedom Works, Moore previously wrote on the economy and public policy for The Wall Street Journal.

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