Allergan Inc.

Pfizer-Allergan's Rx for tax avoidance

Pfizer-Allergan's Rx for tax avoidance

You've got to hand it to pharmaceutical giant Pfizer Inc.: It's managing to make Americans resent drug companies even more than they already did.

The maker of Viagra and Lipitor is the latest to announce a merger that's designed at least in part to escape high U.S. corporate tax rates. In a $160-billion deal, it would subsume itself into a smaller foreign rival, Allergan, to create the world's largest drug manufacturer — still called Pfizer, still operating out of New York City, but based for tax purposes in Allergan's home of Ireland. (Allergan itself was a U.S. company until an Irish drug maker bought it in March.)

Politicians roundly blasted the blockbuster deal, as...