Walgreen Co. Reportedly Staying Put
When I had my pharmacy, in my small town Walgreens had a store in the downtown area for years… The only Walgreens in the entire county.. this same county today has five stores… three in the city limits alone. They started building a new store across from the county hospital… all the while it is being published in the local news paper that Walgreens was committed to having/keeping their original store downtown.
The new stores opens… and the same week the Rx dept in the downtown store was closed down.. the liquor permit of the downtown store was transferred to the new store and they had a “STORE CLOSING SALE” in the old downtown store… and in a matter of days… the old down town store was HISTORY.. The same store that they had professed for months in the local newspaper was committed to keeping open.
Walgreens is a publicly held business … which means that their primary focus is keeping the stock market happy… in turn.. the stock market will reward Walgreens with higher stock prices.. as long as Walgreens continues to produce more and more profits. “The market” only cares about a company’s profits this quarter and what the profits that are projected for next quarter.
The monies on the table with this inversion is reportedly around TWO MILLION DOLLARS a day in Federal taxes. I would take a guess that Walgreens gets at least 30%-40% of their overall revenue from Medicare/Medicaid and other Federal healthcare programs.. So if they – or some other company – does an inversion… guess who has to make up for these lost federal revenues…
Here is a hint…. it isn’t the 49% of the households that DON’T PAY ANY FEDERAL TAXES.
During the past July… the Dow Jones index dropped 5%+ BUT.. WAGS stock DROPPED over TWICE THAT AMOUNT…
Color me skeptical that this is done/dead/over…
Filed under: General Problems
I tend to agree with you Steve that this is not the end of the story, inversion may still occur one Friday afternoon of a long holiday weekend.
Walgreen’s does get substantial tax payer dollars from Medicare, Medicaid and ACA federal subsidies. I could foresee some organizations like CalPERS divesting itself from WAG, or if they fund plans refusing to keep WAG in its network.
I am boycotting walgreens until they stop the discrimination.
Bullshit. First the corporate tax of the US is the highest in the world(35%).Second the US taxes not only profits made in the US but also profits made in other countries.
If they do not pay taxes we do not necessarily have to pay more. Politicians can cut spending. Medicare is a financial time bomb.
The money now going into the pockets of politicians could have gone into opening more stores and hiring more pharmacists.
Perhaps you would like to see Walgreens ,CVS etc go bankrupt, close stores and
layoff pharmacists?
The way you are treated by employers is determined by supply and demand. If you
think they will treat you better by regulations, or by state BOPs you live in fantasy world.