Apparently 13% of Walgreen's value is from tax dodging opportunity.

[theeedude]

http://www.dallasnews.com/business/...reen-turns-down-inversion-to-cut-tax-bill.ece

Walgreen will not pull off an inversion, however, a tactic that has become increasingly popular with U.S. companies seeking tax relief, but which has sparked growing backlash in Washington.
The pressure from investors remains intense, however, and shares of Walgreen tumbled sharply Wednesday morning, after the Deerfield, Illinois, company announced its plans and lowered its 2016 earnings goal for the combined company.

Stock is down 13% when they decide not to pursue this inversion legal tax scam.

 

[Hayabusa Rider]

Too bad. The government screws them and they cave. I'm wondering if it's time for providers to pay DC a visit and present uncomfortable truths in a most public fashion.

 

[theeedude]

Too bad. The government screws them and they cave. I'm wondering if it's time for providers to pay DC a visit and present uncomfortable truths in a most public fashion.

Yeah, "too bad" they will pay taxes in the country where they make 25% of their profits from taxpayer paying for prescriptions through Medicare and Medicaid.

 

[glenn1]

Yeah, "too bad" they will pay taxes in the country where they make 25% of their profits from taxpayer paying for prescriptions through Medicare and Medicaid.

You're free to advocate for those programs to be stopped. It's not like Walgreens did anything to get that taxpayer-paid business; since Medicare is essentially mandated as the primary insurance for anyone over 65 they'd have to refuse service to any older people to avoid making that '25% profits' you're talking about. Even if they did refuse it you'd probably have the feds sue them to ensure they did serve the Medicare/Medicaid population.

And your thread should be more properly titled "Walgreens pays 13% premium to retain HQ in the U.S. with no corresponding business benefit."

 

[nehalem256]

Yeah, "too bad" they will pay taxes in the country where they make 25% of their profits from taxpayer paying for prescriptions through Medicare and Medicaid.

And no matter what they did they would still be paying taxes on those profits.

Seems like you don't understand US corporate tax policy.

 

[Veliko]

You're free to advocate for those programs to be stopped. It's not like Walgreens did anything to get that taxpayer-paid business; since Medicare is essentially mandated as the primary insurance for anyone over 65 they'd have to refuse service to any older people to avoid making that '25% profits' you're talking about. Even if they did refuse it you'd probably have the feds sue them to ensure they did serve the Medicare/Medicaid population.

You seem to have woefully misinterpreted his point.

 

[theeedude]

And no matter what they did they would still be paying taxes on those profits.

Seems like you don't understand US corporate tax policy.

So why is their stock down 13%?

 

[theeedude]

You're free to advocate for those programs to be stopped. It's not like Walgreens did anything to get that taxpayer-paid business; since Medicare is essentially mandated as the primary insurance for anyone over 65 they'd have to refuse service to any older people to avoid making that '25% profits' you're talking about. Even if they did refuse it you'd probably have the feds sue them to ensure they did serve the Medicare/Medicaid population.

And your thread should be more properly titled "Walgreens pays 13% premium to retain HQ in the U.S. with no corresponding business benefit."

I guess we the US taxpayers should apologize to Walgreens for imposing 25% of their profit on them.
These same health care companies doing inversions are also lobbying to keep Medicare from negotiating lower prices. They are not passive bystanders in this. They bought politicians who rigged the system in their favor, and are now taking the taxpayers on both ends. But you keep living in your little pipe dream that they are innocent bystanders and windfall profit margins from taxpayers and tax loopholes just happened to them.

 

[IndyColtsFan]

http://www.dallasnews.com/business/...reen-turns-down-inversion-to-cut-tax-bill.ece



Stock is down 13% when they decide not to pursue this inversion legal tax scam.

Weren't you one of the ones who said it was OK for the Clintons to use legal tax loopholes to avoid paying more taxes? How is this any different? If you want the inversions to end, legislation or (even better) corporate tax reform is needed.

 

[glenn1]

I guess we the US taxpayers should apologize to Walgreens for imposing 25% of their profit on them.
These same health care companies doing inversions are also lobbying to keep Medicare from negotiating lower prices. They are not passive bystanders in this. They bought politicians who rigged the system in their favor, and are now taking the taxpayers on both ends. But you keep living in your little pipe dream that they are innocent bystanders and windfall profit margins from taxpayers and tax loopholes just happened to them.

Again, advocate for a smaller government and politicians whose power doesn't depend greatly on the ability to bestow law advantages on those who donate to their campaigns. You can't have both support a government that plays Santa Claus to people and companies you like, but at the same time rage on when the "wrong" companies get the goodies.

 

[theeedude]

Weren't you one of the ones who said it was OK for the Clintons to use legal tax loopholes to avoid paying more taxes? How is this any different? If you want the inversions to end, legislation or (even better) corporate tax reform is needed.

:thumbsup:

 

[theeedude]

Again, advocate for a smaller government and politicians whose power doesn't depend greatly on the ability to bestow law advantages on those who donate to their campaigns. You can't have both support a government that plays Santa Claus to people and companies you like, but at the same time rage on when the "wrong" companies get the goodies.

The "small government" politicians are the ones barring Medicare from negotiating prescription drug rates, and keeping these loopholes open.

 

[s0me0nesmind1]

I thought this was absolutely beautiful. For once I can say fuck the shareholders.

Honestly, this is one of the VERY few things I approve of with our president. Hell, just bringing up the subject of tax dodging is VERY useful. He doesn't even have to pass a fuckin' bill, just make it known to the public that their local drug store is planning on doing it. However, there is one fault - the only reason Walgreens is doing this is because they have a reputation with the consumer public.

Picture this: The merger was between 2 drug companies (which is currently going on as well). Most people don't (and can't) choose who provides their medication - they don't even know. All they know is they hand the pharmacy a prescription paper and they hand them a bottle saying "This is X drug from Walgreens". This is simply a case of a merger that included a public image for consumers.


For those tax oblivious though (90% of this forum). M&A tax dodging has been going on for.... forever, it's nothing new, it's just being brought out to light recently.

 

[smackababy]

If you want the inversions to end, legislation or (even better) corporate tax reform is needed.

And we all know this isn't going to happen. Tax reform (not just corporate) could easily be done with some blanket rules. However, nobody wants to pass this, because they are the house of majority millionaires. If voting to pass a law impacted my bank account, I'd likely be against it as well.

 

[Doc Savage Fan]

:thumbsup:

Nice dodge!

 

[glenn1]

The "small government" politicians are the ones barring Medicare from negotiating prescription drug rates, and keeping these loopholes open.

Why even bother to negotiate? Congress could pass a law extending drug patent lives in return for "free" drugs from the manufacturers. Since their incremental cost of production is almost zero it would be a win-win for both sides. Or just nationalize the drug companies outright like Chavez does, since he's the hero for lots of folks here.

As for "keeping loopholes open," again please close them. But somehow I doubt you would be willing to close the loopholes you agree with, only the ones you disagree with. There's a certain amount of willful blindness by those who rage against things like "oil and gas company subsidies" but obliviously support "heating oil assistance" programs for the poor - as if the money isn't ultimately going to the same oil and gas companies they just bashed.

 

[nehalem256]

So why is their stock down 13%?

Because US corporate tax policy is retarded.

 

[nehalem256]

I guess we the US taxpayers should apologize to Walgreens for imposing 25% of their profit on them.
These same health care companies doing inversions are also lobbying to keep Medicare from negotiating lower prices. They are not passive bystanders in this. They bought politicians who rigged the system in their favor, and are now taking the taxpayers on both ends. But you keep living in your little pipe dream that they are innocent bystanders and windfall profit margins from taxpayers and tax loopholes just happened to them.

So I assume you would support ending the Medicare and Medicaid prescription drug programs.

Or are you in favor of corporate "welfare"?

 

[IndyColtsFan]

:thumbsup:

I'll take that as a "Yes, I defended the Clintons for using legal tax loopholes to avoid paying more taxes, but since they're Democrats, it is OK."

 

[Hayabusa Rider]

Yeah, "too bad" they will pay taxes in the country where they make 25% of their profits from taxpayer paying for prescriptions through Medicare and Medicaid.

Really? Let's see some figures. You do know the difference between income and profit, right?

 

[K1052]

It was a pretty short sighted move by the fund managers to publicly push them into considering the inversion in the first place. Usually companies that do this aren't so customer facing....for now obvious reasons.

 

[zanejohnson]

walgreens is a great company, they pay pharmacy techs ~12-13 bucks an hour as opposed to 8.50 that CVS does, have a friend that's one....

also, as far as customer service goes, walgreens is great, barely worse than a mom and pop, as opposed to CVS, who is probably the worst ran company i have ever dealt with, from the bottom to the top... they pay their people completely peanuts, from bottom to top, only the PIC position is competative,.... and that's s recipe for complete disaster.

haha fucking drug pushing monsters, just the shareholders make money, rofl...

 

[Hayabusa Rider]

walgreens is a great company, they pay pharmacy techs ~12-13 bucks an hour as opposed to 8.50 that CVS does, have a friend that's one....

also, as far as customer service goes, walgreens is great, barely worse than a mom and pop, as opposed to CVS, who is probably the worst ran company i have ever dealt with, from the bottom to the top... they pay their people completely peanuts, from bottom to top, only the PIC position is competative,.... and that's s recipe for complete disaster.

haha fucking drug pushing monsters, just the shareholders make money, rofl...

Well CVS is probably second worst. I'm still waiting for some creditable source regarding his fantasy profit figures

 

[zanejohnson]

Well CVS is probably second worst. I'm still waiting for some creditable source regarding his fantasy profit figures

people who are in tha biz actually refer to them as the "evil 3"

cvs, rite-aid, walgreens

 

[OverVolt]

Well CVS is probably second worst. I'm still waiting for some creditable source regarding his fantasy profit figures

He is saying they dropped 13% in market cap on the news that they would not do a tax inversion.

So... the public opinion on the companies net worth dropped 13% because they didn't dodge a bunch of taxes. Must've yanked their money and stuffed it into GE or something.