Abbott Faces Senate Probe Tying System Woe to Tax Reduce, Buybacks

May 18, 2022, 3:59 PM

  • Wyden says he’s concerned about high profits, low tax rates
  • Key Senate Democrat questions investments into formula plant

Senate Finance Committee Chairman Ron Wyden is investigating embattled drugmaker and formula producer Abbott Laboratories’ low tax rates and alleging the company’s investments in stock buybacks may have driven the nationwide baby formula shortage.

Wyden, in a letter to Abbott Chief Executive Officer Robert Ford, highlighted the company’s tax rate — which has averaged 12% over the past three years — and $8 billion in stock buybacks in recent years.

“I have long been concerned that windfalls from sweeping tax cuts for mega-corporations enacted by the 2017 Republican tax law would be used for padding the pockets of …

Laura Davison

Bloomberg News

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