Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

SEC

Executive Summary

936's "BROADER" IMPACT ON PUERTO RICAN ECONOMY should be considered by Congress in its evaluation of the possessions tax credit, Merck President and CEO John Huck urged Congress in testimony before the House Ways & Means Cmte. June 27. "We urge the cmte. to consider the overall impact of production, construction, trading, reinvestment and govt. expenditures on the Puerto Rican economy," Huck stated. "It is doubtful that such progress would be continued if Sec. 936 were repealed. We submit that such a broader assessment of the impact of the possessions credit will demonstrate that it should and can be retained without diverting from the goals of tax reform." Huck's testimony is part of the House Ways & Means Cmte.'s continuing hearings on the Reagan Administration's tax simplification plan. The Merck chief exec's comments reflect drug industry opposition to the Reagan plan's proposal to replace Sec. 936 with a wage-based tax credit. The administration's arguments for the wage credit rest on its position that Sec. 936 be judged solely on its impact on direct employment in Puerto Rico. While urging support for the overall principles of the tax plan, Huck requested revisions in several areas in addition to Sec. 936. For example, Huck asked "Treasury and this cmte. to consider among its priorities making permanent the current moratorium on the rules relating the allocation of research and development expenses against foreign source income." Asserting that under the current rules, an increase in R&D will reduce a company's ability to credit the foreign taxes it pays, Huck declared: "This disincentive must be eliminated in order to stimulate research and keep America competitive with its major trading partners."

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

UsernamePublicRestriction

Register

LL1133546

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel