It looks as though technology and pharmaceutical companies could be hit the hardest from President Biden’s proposed tax hikes.
Regardless, even after the changes are made, regulators are going to have their hands full in trying to minimize loopholes to get around the new changes.
Most assets at companies like pharmaceutical companies or technology companies are intangible assets like IP and patents. This makes it easier for these companies to structure their operations in tax-friendly ways because they don’t have to “move” anything to move their headquarters and, ergo, their tax treatments.
Kyle Pomerleau, a resident fellow at the American Enterprise Institute, commented to Bloomberg: “Tax planning is always going to be present as long as there are differences in tax laws across different countries. Companies are going to take advantage of that.”
And it has been a bipartisan effort to try and bolster taxes on companies who have been taking money overseas. Biden’s plan