Free Markets, Free People

Economic Statistics for 24 May 13

Here are today’s statistics on the state of the economy:

Durable goods orders rose a better-than-expected 3.3% in April. Ex-transportation orders rose 1.3%. On a year-over-year basis, Orders were up 2.4% overall, while ex-transportation orders rose 0.9%.

Dale Franks
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3 Responses to Economic Statistics for 24 May 13

  • While a Senate report detailing Apple’s aggressive tax sheltering of billions of dollars of overseas income grabbed headlines this week, …the American drug maker Actavis announced that it would spend $5 billion to acquire Warner Chilcott, an Irish pharmaceuticals company less than half its size. Buried in the fifth paragraph of the release was the curious tidbit that the new company would be incorporated in Ireland, even though the far larger acquirer was based in Parsippany, N.J. The reason? By escaping American shores, Actavis expects to reduce its effective tax rate from about 28 percent to 17 percent, a potential savings of tens of millions of dollars per year for the company and a still larger hit to the United States Treasury.

    … and who says Apple doesn’t still have a leadership position ?

  • Fortune — Drugmaker Actavis (ACT) announced yesterday that it will buy rival Warner Chilcott PLC for $5 billion in stock and that, as part of the deal, it plans to reincorporate itself in tax-friendly Ireland, where Warner Chilcott (WCRX) is based. This despite the fact that the company’s top executives, including CEO Paul Bisaro, will continue to live and work in New Jersey.
    “Everybody loves New Jersey too much, so nobody is willing to go,” he said on a conference call yesterday. The move makes Actavis the latest Fortune 500 company to “leave” the U.S.
    in search of a lower tax rate and thrusts the generic drug giant into the ongoing debate about corporate tax rates in the U.S. alongside tech giant Apple (AAPL).