Sen­ate Fi­nance chair slams phar­ma in­dus­try's use of for­eign sub­sidiaries to cut their tax bills

Phar­ma com­pa­nies now see an av­er­age ef­fec­tive tax rate that’s 40% less than in re­cent years, large­ly thanks to a Re­pub­li­can-passed tax cut law in 2017 that al­lows the com­pa­nies to fil­ter their sales through off­shore sub­sidiaries and avoid the high­er US tax rate, Sen­ate Fi­nance com­mit­tee chair Ron Wyden’s (D-OR) said in a new re­port to­day as part of his on­go­ing in­ves­ti­ga­tion in­to phar­ma’s tax prac­tices.

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