In a bid to prevent what has been called the biggest tax evasion scheme of its kind—and others like it—Sen. Bernie Sanders of Vermont has urged U.S. Treasury Secretary Jack Lew to use his agency's authority to block the planned merger of two pharmaceutical giants.
Viagra-maker Pfizer's proposal to acquire Allergan, which manufactures Botox, is "nothing less than a tax scam," Sanders wrote in a letter (pdf) sent to Lew on Friday.
The so-called "corporate inversion," which would allow Pfizer to
profit from a lower corporate tax rate in Allergan's home country of
Ireland, could starve the U.S. government of up to $35 billion in tax
revenue, Sanders said, citing a recent report from consumer group Americans for Tax Fairness.
Starving, with an expectation of 4 trillion in spending, 25 billion is chump change.
Perhaps Sanders should focus on fixing our broken tax system.