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Pharma companies are resisting a tentative agreement between 130 countries to create a minimum corporate tax of 15%. The plan intends to combat tax inversion and other forms of tax avoidance.
Some U.S. industries, including Big Tech, have backed the plan given its potential to simplify accounting — even if it increases their tax rate.
But the pharma industry is highlighting its role in developing COVID-19 vaccines and other therapies in their opposition to the plan. Arguing that higher taxes would curb their ability to innovate, drug companies are worried about the proposal’s threat to their bottom line. Large pharma companies could see their tax bill increase by hundreds of millions of dollars annually if the plan is finalized. Moreover, pharmaceutical companies could see a larger tax hike than some other industries given their global presenc…