Tax Avoidance by Pharmaceutical Companies in the U.S.

SOURCE npr.org
Many large pharmaceutical companies in the U.S. pay very low taxes, with effective tax rates far below the 21% corporate tax rate. Pfizer, for example, reported a negative effective tax rate despite booking $59 billion in revenue.

Key Points

  • Pharmaceutical companies report losing money in the U.S. despite high sales due to complex tax strategies
  • Pfizer reported a negative effective tax rate for 2023 despite significant revenue
  • Tax laws and loopholes allow companies to minimize tax payments

Pros

  • Companies legally minimizing taxes

Cons

  • Potential loss of tax revenue for the U.S. government