Overview
The Pfizer-Allergan Tax Inversion
This case highlights the issue of corporate tax avoidance through the tax tool of corporate inversions. While Congress has passed legislation in 2016 in an attempt to restrict corporate inversions followed by a decrease in corporate tax rates during the Trump administration, the practice of corporate inversions still continues. The Biden administration is considering an increase in the corporate tax rate.
The readings also continue to highlight the use of tax legislation to create economic stimulus and improve economic growth.
Read the HBR article: Sticks and Stones? How Companies Respond to Tax Shaming.”
Apply the HBR articles and the assigned readings in week 5: Question : Do we need to worry about budget deficits and tax cuts during a pandemic? Considering theprior administrations (Jefferson, Eisenhower, Kennedy, Reagan, Bush, Obama, and Trump) how can this be paid for?