Harry Stein: Pfizer’s tax-dodging bid for AstraZeneca shows need to tighten U.S. tax rules

  American drug maker Pfizer is attempting to acquire AstraZeneca, the United Kingdom’s second-largest pharmaceutical company. If successful, Pfizer would avoid paying billions of dollars in U.S. taxes by becoming a U.K.-based corporation, and Pfizer executives have made these tax benefits a central element of their pitch to AstraZeneca. This corporate maneuver, in which a U.S. corporation becomes a foreign corporation for tax purposes, is called a corporate inversion. Lawmakers on both sides of the aisle have fought back against corporate inversions for years, and they could be stopped if Congress were to strengthen laws passed 10 years ago.