P.M. BRIEFING : Drug Firms Moving, Union Says
American pharmaceutical companies are moving thousands of American jobs to Puerto Rico so they can abuse a federal tax break, a union charged today.
The Oil, Chemical and Atomic Workers Union said a $100-million lawsuit was being filed against New York-based American Home Products Corp. in connection with the company’s closing of a plant in Elkhart, Ind., and opening of a plant in Puerto Rico.
The suit, being filed in San Juan, also named government officials in Puerto Rico who allegedly rubber-stamped American companies’ applications for the special tax status rather than investigate evidence that the companies aren’t eligible.
At issue is an Internal Revenue Service tax break that gives a special tax status to companies that invest in Puerto Rico. In order to be eligible for the special tax advantage, no American mainland jobs can be eliminated by the new investment.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
