Saturday, January 20, 2018
Business

Walgreen turns down inversion, which could have cut tax bill

Growing political heat and possible customer backlash helped dissuade Walgreen from trying to trim its tax bill by reorganizing overseas as part of an acquisition.

But experts say they don't expect other companies considering the move to follow Walgreen's lead and stay rooted in the United States.

Walgreen, the nation's biggest drugstore chain, said Wednesday that it would no longer consider a so-called inversion, which has become popular among large, multinational health care companies looking to cut U.S. taxes. The company said it will instead buy the remaining stake in Swiss health and beauty retailer Alliance Boots that it does not already own for more than $15 billion. Walgreen had contemplated the move since buying a 45 percent share in 2012.

Walgreen said in a statement that it was "mindful of the ongoing public reaction to a potential inversion" and its "unique role as an iconic American" retailer.

Walgreen's decision follows a wave of recently announced inversions that have prompted President Barack Obama and members of Congress to voice growing concern about tax revenue the U.S. government could lose from these moves.

Inversions involve a U.S. company reorganizing in another country by either acquiring or combining with another business. These deals provide tax relief in a number of ways. They allow companies to transfer money earned overseas to the parent company without paying additional U.S. taxes. Inversions also provide some relief from the U.S. corporate income tax rate of 35 percent, which is the highest in the industrialized world.

There have been 47 U.S. companies that have put together inversions through tieups with foreign businesses over the past decade, according to the Congressional Research Service. Several others are planning or considering the move.

Walgreen shares sank $9.88, or more than 14 percent, to close at $59.21 Wednesday.

Comments
Inspector General launches investigation into Tampa Bay’s local career centers

Inspector General launches investigation into Tampa Bay’s local career centers

The state has opened an investigation into CareerSource Pinellas and CareerSource Tampa Bay, days after the Tampa Bay Times asked about whether the two regional job centers were inflating the number of people they had helped get hired. The agencies, ...
Updated: 9 hours ago
Tech firm TranferWise moves to Ybor City, illustrating a new chapter in Tampa’s business history

Tech firm TranferWise moves to Ybor City, illustrating a new chapter in Tampa’s business history

TAMPA — You could sketch an economic history of the city of Tampa — and maybe get a glimpse of its future — just by looking at the old J. Seidenberg & Co./Havana-American Cigar Factory.It opened in 1894, making it Ybor City’s second-oldest brick ciga...
Updated: 11 hours ago

Want to buy into an exchanged-traded bitcoin fund? You might have a long wait

NEW YORK — It may be a while, if ever, before investors can buy an exchange-traded fund made up of bitcoin and other digital currencies. Federal regulators have a long list of questions they want answered before they’ll approve a digital currency fun...
Updated: 12 hours ago
Child psychologist weighs in on mom who charges 5-year-old ‘rent’

Child psychologist weighs in on mom who charges 5-year-old ‘rent’

A Georgia mother has gone viral for charging her 5-year-old "rent." Yup — the kid pays up for food, water, cable and electric, too.Essense Evans described in a Facebook post how she handles her daughter’s allowance. The post, written on Saturday, was...
Published: 01/19/18

Addicted to your smartphone? Now there’s an app for that

Did you text? Sorry, I can’t see messages right now. Arianna Huffington locked my phone.The media tycoon turned wellness entrepreneur wants to keep you out of your phone, too, with a new app called Thrive. Its goal is to make it cool for a generation...
Published: 01/19/18
Proposed monument near St. Pete pier would honor Tony Jannus history-making flight

Proposed monument near St. Pete pier would honor Tony Jannus history-making flight

ST. PETERSBURG — Tony Jannus’s history-making flight in an early seaplane — simultaneously as ungainly and graceful as a pelican on the wing — is what Mayor Rick Kriseman calls an "under-told and under-appreciated" story, but a team of local history ...
Published: 01/19/18
Learn how bus rapid transit (and rail) could work in Tampa Bay

Learn how bus rapid transit (and rail) could work in Tampa Bay

ST. PETERSBURG — The newest hope for transportation in the Tampa Bay area is a bus rapid transit system projected to cover the 41-miles separating St. Petersburg from Wesley Chapel and attract 4,500 new riders at a fraction of the cost of light rail....
Published: 01/19/18
Five things Tampa Bay needs to know about bus rapid transit

Five things Tampa Bay needs to know about bus rapid transit

ST. PETERSBURG — Transportation planners on Friday unveiled a new transit vision for Tampa Bay leaders on Friday morning: Bus rapid transit.Also known as BRT, it has arisen as the leading option in an ongoing study to find the best regional transit p...
Published: 01/19/18
Amazon boosts monthly Prime membership fees by 20 percent

Amazon boosts monthly Prime membership fees by 20 percent

NEW YORK — Amazon is raising the price of its Prime membership monthly plan by nearly 20 percent. The fee of $99 for an annual membership will not change, the company said Friday. The online retailer had added the monthly payment option about two yea...
Published: 01/19/18
Cuba’s tourism is booming despite Trump’s tougher policy

Cuba’s tourism is booming despite Trump’s tougher policy

HAVANA — On a sweltering early summer afternoon in Miami’s Little Havana, President Donald Trump told a cheering Cuban-American crowd that he was rolling back some of Barack Obama’s opening to Cuba in order to starve the island’s military-run economy...
Published: 01/19/18