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.