Senators again point to AbbVie as a poster child for reform. Only this time Dems are targeting a low, low tax rate
In the first 4 years after AbbVie split away from Abbott with its big cash cow Humira in tow back in 2013, the pharma giant paid an effective tax rate that ranged anywhere from 20% to 25%. But after dipping a bit in 2017, their tax rate plunged into single digits, rising to 12.5% last year — still far below the US corporate tax rate of 21%.
Sales in 2021 hit $56 billion, which a new Senate Finance Committee report makes clear depended heavily on the regular price increases pushed for Humira, which accounts for a 470% price hike over the time since the drug was first approved.
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