The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Taking Their Taxes Offshore

Oct 14, 2013

Perrigo Company is leaving Allegan, Michigan – but only for tax purposes.

Perrigo is the world’s largest producer of store-brand over-the-counter drugs. It’s merging with Elan, an Irish biotech company.

But, say their executives, this will mean no operational, management, or structural changes in Michigan.

No, because the merger is a legal dodge to get out of paying Michigan and U.S. taxes. The new Perrigo company will register in Ireland and pay Irish taxes at 12.5%, instead of paying 30% U.S. taxes. The company says it will save $150 million a year.

“It’s a nice structure for us,” said a Perrigo vice-president.

It’s also a nice example of why local governments are running out of money. And legal loopholes like these aren’t made available for workers.