How Do Biotech and Pharma Companies Feel About New Tax Law?
How Do Biotech and Pharma Companies Feel About New Tax Law?
The back and forth regarding the new tax reform bill has been endless since even before it became law. Obviously, there are pros and cons and both sides hold tight to their arguments. Additionally, some taxpayers and industries oppose the reform, while others are embracing it.
Two such industries are biotech and pharma.
However, it might not be for the reason you think. While the corporate tax rate has been lowered significantly, the fact is, these industries won’t actually see a big gain from the new rate, because they have been keeping so much of their cash overseas. That means they’ve already been saving big-time on corporate taxes.
However, biotech and pharma companies will be able to use that overseas cash much easier under the new law. That’s because the new law encourages companies to bring cash being stored overseas back to U.S. soil. Corporations have been slow to do that because of the high corporate tax rate previously in place.
Now, the new law makes it a lot cheaper for companies to bring money back to the U.S. Pharma companies and biotech firms have some of the largest amounts of cash in foreign lands, so by lowering the corporate tax rate stateside, these companies are likely to start bringing more of that cash back home.
By bringing it back to the U.S. these companies would then have access to a lot more assets, which they could use to fund more transactions.
We hope you found this article about “How Do Biotech and Pharma Companies Feel About New Tax Law?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
The Amazing Visionary Mind behind Cave Financial
The Visionary Mind behind Cave Financial Michael Cave started Cave Financial over 20 years ago with the vision of providing families and businesses with assistance in creating, protecting, and preserving their wealth. After completing his education in accounting at Ball Corp, Michael gained experience working for various companies, such as Boeing Co. and Harley Davidson.…
Good Financial Planning Let’s You Live Your Lifestyle with Michael Cave, Managing Director of Cave Financial
Michael Cave, Managing Director of Cave Financial discusses how good financial planning can let you Live Your preferred lifestyle with Alan Olsen. Transcript (software generated): Alan Olsen Michael, for the listeners here. Can you give us your background and how you got to the point you are today? Michael Cave Yeah, well, I guess like…
Derek Lobo’s Brilliant “Self Funding House”: The Dream has Not Passed You By
Introducing Derek Lobo, author of Self Funding House Derek Lobo, CEO & Broker of Record of SVN Rock Advisors Inc., is a recognized housing expert in Canada’s expensive and highly competitive housing markets. As Derek puts it, the affordability gap between home ownership and renting has become a full-fledged crisis. Current interest rates are not…
The Self Funding House with Derek Lobo, Commercial Real-Estate Titan
Derek Lobo talks with Alan Olsen, CPA and Host of the American dreams show about his book; “The Self Funding House”. Transcript (software generated): Alan Olsen Welcome to American Dreams. My guest today is Derek Lobo. Derek, welcome to today’s show. Derek Lobo All him great to be here, man. Alan Olsen Derek…