Treasury’s arbitrary, harmful move

On Monday, the U.S. Treasury announced a third set of new rules governing corporate re-domicilings, or so-called inversions. … This week’s Treasury action interprets the tax laws in ways never done before. This ad hoc and arbitrary attempt to single out and damage the growth opportunities of companies operating within the current law is unprecedented, unproductive and harmful to the U.S. economy.

The action was accompanied by much unfortunate rhetoric about tax avoidance. No one was shirking their U.S. tax bills. In a merger with Allergan PLC, an Irish company, we would have continued to pay all federal, state and local taxes on our U.S. income. All that these new rules will do is create a permanent competitive advantage for foreign acquirers. Simply put, there will be more foreign acquisitions of U.S. companies resulting in fewer jobs for American workers.

What fails to get noted is our steadfast commitment to science and good corporate

YOUR VIEWS citizenship. More than half of Pfizer’s 1,000-plus R&D collaborations take place in the U.S., where our partners include academic hospitals, government organizations, nonprofits, foundations, patient advocacy groups and other pharma companies.

Companies like Pfizer and Allergan contribute to the communities in which we operate. To be pilloried as “deserters” when we are trying to stay competitive on a global stage so that we can continue to invest in the U.S. is wrongheaded. …

While the Treasury’s proposal is a shot at Pfizer and Allergan, this unilateral action will hurt other companies as well. If the rules can be changed arbitrarily and applied retroactively, how can any U.S. company engage in long-term investment planning necessary to compete? The new “rules” show that there are no set rules. Political dogma is the only rule.