WASHINGTON — Frank Clemente, Executive Director of Americans for Tax Fairness (ATF), reacted positively to preliminary reports today that Walgreens will not renounce its corporate status in the United States to avoid paying its fair share in taxes. Walgreens shares dropped 9% after the decision was made public, then rebounded slightly.
Americans for Tax Fairness has been a strong critic of corporations that renounce their U.S. corporate status to avoid paying their fair share in taxes. In May, it released a report finding that Walgreens would save $4 billion over five years by becoming — on paper — a Swiss company. ATF and its coalition allies have strongly criticized Walgreens for seriously considering an inversion and have helped inform the American public about the issue.
“This is a victory for American taxpayers,” said Frank Clemente, Executive Director of Americans for Tax Fairness. “When a corporation deserts America to avoid paying its fair share of taxes, the rest of us are forced to pick up the tab – in this case, a $4 billion tab over 5 years. Walgreens executives must have realized that abandoning the U.S. that American consumers would consider this move a betrayal and might decide to shop elsewhere. Other companies considering an inversion should pay close attention to the Walgreens example.”
The news report of the Walgreens decision, which has not yet been announced formally, comes on the heels of a new poll released today that shows that Americans overwhelming disapprove of corporate inversions. Over two-thirds of likely voters disapprove, including 86% of Democrats, 80% of Independents and 69% of Republicans.
Americans for Tax Fairness is a diverse coalition of 425 national and state organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.