(Bloomberg) — American International Group Inc. Chairman Steve Miller said lawmakers should bring U.S. corporate tax rates in line with other nations' to halt firms from switching their legal address to cut obligations.
The U.S. corporate tax rate of 35% is the highest in the world, which causes companies to rush for the exits like people do when there's a "fire in the theater," Miller said today on Bloomberg TV's Surveillance program.
AbbVie Inc., maker of the arthritis medicine Humira, announced a deal last week to move its tax home to the U.K. in a purchase for more than $50 billion of Shire Plc. Senate Finance Chairman Ron Wyden, an Oregon Democrat who first said he wanted to address such inversions as part of a broader tax revamp, said last week that he's exploring near-term options. His committee is scheduled to hold a hearing on the maneuvers tomorrow.
"Our politicians want to lock the doors," Miller said. "The real answer would be, let's put out the fire, which means to make our U.S. tax system competitive on a global scale."
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