THREE CHEERS FOR PFIZER

The U.S. Economy grew at a less than robust 1.5 percent in the third quarter, some of the heavy hitters in energy fear continued weak prices after booking losses during the quarter and a big shout out goes to Pfizer, the huge drug manufacturer, in their quest to send a shot across the bow of those tax-grubbing, freedom-stifling, anti-business politicians in Potomac Land.

In what could be the biggest nose-thumbing yet, Pfizer continues it's overseas quest to cut U.S. corporate taxes as it pursues an apparent takeover of Ireland's Allergan PLC, a $100 billion-plus pursuit, according to today's WSJ.

The move puts the huge maker of Advil and Viagra besides a host of other drugs once again in the cross hairs of a nasty debate with Congress about a company's right to locate its head office wherever and whenever it wants irrespective of tax consequences. That's really what's at stake here, liberty, absolute liberty, the real American way.

Recall Pfizer waged an earlier battle with Potomac Land's politically self-righteous last year when it tried to merge with UK drug maker AstraZeneca PLC for $120 billion before the deal fell through, bringing out the politically-initiated anti-American catcalls mostly from politicians living, playing and profiting on the left.

Known in the business as inversions, the Journal reports, last year "The Treasury Department announced a plan to make these deals less attractive, mostly by limiting access to overseas cash."
It's no secret that politicians and candidates "in both parties want to reduce the tax advantages of incorporating abroad, but they disagree on how to do it," the Journal said. Pfizer's tax rate for 2014 was nearly 26%.

Just this past week, the Journal reports, billionaire investor Carl Icahn "pledged a $150 million to a political-action committee that would lobby to reduce taxes on  corporate profits earned overseas and support legislation to block inversion."

We don't know Icahn's politics but we suspect they lean more left than right. His proposal is called an incentive though some might call it a bribe, something nearly every state government in the country worthy of the name uses to try to attract businesses from other higher-tax locales here and abroad.

For those who reside in high-tax states like California, it's commonplace to read about and run into bureaucrats from lower-tax areas like Mississippi and Texas trying to cajole local business away with lower tax incentives. And rightfully so. That, too, is called liberty.

The real truth is competitive is as competitive does and as the Journal notes, competition is particularly heavy in pharmaceuticals "where many of the largest players are based in lower-tax countries: 17 of the 25 biggest drug companies by value are foreign and paid an average 17% tax rate last year versus 24% for U.S. companies."

So here it is: Hip, Hip, Go Get 'Em Pfizer!