Congresswoman Rosa DeLauro (CT-03) today released the following statement regarding news that Pfizer and Allergan are calling off a $150 billion merger that would have allowed Pfizer to shift their headquarters overseas to avoid paying taxes in the United States.
"News that Pfizer and Allergan are calling off a $150 billion merger is a sign that the Administration's new actions on inversions are working as intended. Every year, hardworking Americans fulfill their civic duty to pay taxes and it is completely outrageous that corporations exploit the U.S. tax code to avoid doing the same. When corporations have built their companies here in the United States, using our infrastructure, education, and workforce, they should have to pay taxes in the United States. Period.
"Corporate inversions cost the United States billions of dollars in revenue each year. While the new actions by the Administration are a critical step forward in closing corporate tax loopholes, Congress needs to go further and stop putting special interests ahead of the middle class. We cannot continue to allow corporations to get a free ride while Americans across the country are working as hard as they can and are still falling behind."
Last September, DeLauro urged the Treasury Department to take action to stop corporate inversions, citing Section 385 of the Internal Revenue Code as giving the Treasury Department broad authority to do so. Earlier this week, she applauded the Treasury Department's new announcement, calling it "a welcomed step in stopping companies from abusing the United States' tax system for corporate gain."