From CNBC: 2025-06-17 13:50:00

Democratic lawmakers Elizabeth Warren and Jan Schakowsky questioned Pfizer, Merck, Johnson & Johnson, AbbVie, and Amgen about their low tax bills and support for extending tax cuts in the GOP reconciliation bill. The companies allegedly avoided U.S. taxes by shifting profits offshore, benefiting from Trump’s 2017 tax act. Warren and Schakowsky urge accountability.

The multitrillion-dollar tax and spending package, if passed, would make provisions from Trump’s 2017 tax act permanent and include historic spending cuts. The bill faces Senate review, where Republicans may revise provisions. Democrats aim to eliminate offshore tax loopholes benefiting pharmaceutical companies, facing opposition from Republicans.

A Council on Foreign Relations analysis suggests reforming the offshore tax loophole could raise $100 billion over a decade. Lawmakers have asked drugmakers to clarify their role in lobbying for tax breaks and federal tax liabilities. J&J looks forward to responding, while Pfizer, Merck, AbbVie, and Amgen have not commented.

Lawmakers have previously criticized Pfizer for avoiding U.S. income tax on domestic drug sales through offshore subsidiaries. The company disputes the claims, stating it paid $12.8 billion in U.S. taxes over four years. The letters to drugmakers come amid discussions of imposing tariffs on pharmaceuticals to reshore manufacturing in the U.S., highlighting tax avoidance practices.



Read more at CNBC: Pfizer, Merck, J&J, others face scrutiny over tax loophole extension