Johnson & Johnson logo displayed on a monitor.
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Two Democratic MPs on Tuesday reduced their bills and suppressed five of the country’s largest pharmaceutical companies and do they support a large -scale tax deduction for the industry. GOP harmony bill,
Sen. Fizer, Merk, Johnson & Johnson, Abbi And Amgen 2024 and despite paying any federal taxes for the benefits earned before years, despite producing dollars of billions of dollars annually from their medicines.
In separate letters to each company on Tuesday, MPs alleged that pharmaceutical companies refrain from paying all US tax bills, changing their profits to offshore subsidiaries in jurisdiction with much tax rates such as Ireland and Bermuda. That practice was enabled by a provision in the President Donald TrumpThe 2017 Tax Cuts and Jobs Act, which aims to curb avoiding corporate tax, instead made new incentives for American multinational companies to advance profits and operations abroad.
In letters, Warren and Shakovski stated that this practice is “one of the methods in which our tax code has been slanting to benefit the rich pharmaceutical corporations, making them capable of benefiting Americans, which they charge the highest drug prices in the world, without paying the proper stake of taxes.”
He pressurized the drug makers about whether he lobbied thousands of dollars of the Congress in Trump’s “One Big Beautiful Bill Act” to efforts to maintain the flaws of that tax, which is in the Republican -led house. pass late May. For example, J&J, according to a letter to the company, lobbied more than $ 150,000 on international tax issues in the fourth quarter of 2024 alone, which quotes, which quotes data Compiled by opensecrets.
If it is currently written, then the Multitilian-Dollar tax and spending package will make several provisions in Trump’s 2017 Tax Act. Current repetition is also included Historical Deducting programs For low -income Americans, including Medicade Health Coverage.
The bill now sits in the Senate, where the Republican Hard-Line House can choose to leave or modify several provisions pushed by the Republican, which demanded to spend together with tax cuts. But any democratic push will be a difficult battle to eliminate the flaws of offshore tax, as Republicans have majority in the upper chamber.
Nevertheless, Democrats have tried to create public opposition to some parts of the law as the GOP tries to balance the interests of the competitive party to pass it. Both parties have targeted pharmaceutical companies for years.
Warren said in a statement to CNBC, “This will be a slap for Congress to expand tax flaws for big pharma companies that are earning billions of profit by overcharging Americans.” “These companies should be held accountable to prioritize their profits on people.
Sen Elizabeth Warren, D-Mas., On April 3, 2025, holds a news conference at the US Capital to oppose the Budget proposal of Senate Republican.
Tom Williams | CQ-Roll Call, Inc. Getty images
Letters to drug manufacturers cite March 1 Analysis By Council on Foreign Relations – an independent, nonpartison think tank – suggesting that improving the flaws of offshore tax will increase at least $ 100 billion in 10 years.
The letters also include questions about the role of each company in the expansion of tax break and their approximate federal tax liabilities. MPs asked each drug maker to respond by 1 July.
Spokespersons of Physic, Merk, Jammu, Kashmir, AbV and Majen did not immediately respond to the requests for comment on letters.
This is not the first time MPs have examined pharmaceutical companies for their tax practices.
a March Report The “largest tax-doding scheme” in the history of the pharmaceutical industry is called the Democratic Sen Ron Widen, D-Ore accused of pulling the Democratic Sen Ron Viden. The report accused the company of using a strategy called “round-tripping” to avoid paying any US income tax at $ 20 billion in domestic medicine sales in 2019.
An investigation by the Democratic Staff of the Senate Finance Committee concluded that the Physicians used tax loopol for funnel profits through offshore subsidiaries in tax haven like Ireland and Puerto Rico despite selling American patients. But the company said that it has paid $ 12.8 billion in American taxes in four years, and says that it has been filed with the Securities and Exchange Commission to return the documents.
The letters come on Tuesday as the Trump administration has considered tariffs on pharmaceuticals in the US, which is in a dialect to resume manufacturing. Trump has complained that Ireland has successfully assured drug manufacturers to open manufacturing operations by offering reduced tax rates.
