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Cramer: Big business near inflection point?

(Click for video linked to a searchable transcript of this Mad Money segment)

A new development suggests big companies may be getting fed up with Washington. Really fed up.

That 'new development' involves Perrigo's recent decision to buy Dublin-based Elan for $8.6 billion in cash and stock, a premium of about 10.5 percent.

Although the merger will create business synergies, Cramer thinks the deal was really about something else."This deal allows the company to shift its geographic status to Ireland, changing the tax burden to a much lower rate."

That, Cramer says, is a big deal.

"When a very good company such as Perrigo is willing to shell out $8 billion to move its headquarters you know we have a problem in this country," Cramer explained.

Currently, when multi-nationals headquartered in the United States repatriate profits from overseas, they're taxed at a rate as high as 35%. For the sake of comparison, "Ireland's corporate tax rate is as low as 12.5%," Cramer explained.

Lisa Stokes | Flickr | Getty Images

"I am sure there are many companies eying what Perrigo just did and thinking, you know what, why do we stay? Why do we inflict this tax rate upon ourselves given that we are international companies What's the point? For them I have no answer because, in truth they shouldn't," Cramer said.

Although the Mad Money host prefers to keep politics out of business, in this case he believes new legislation proposed by President Obama could stem the issue.

The proposal slashes tax on foreign earnings and also lowers the corporate tax rate. However, in exchange, the president wants money generated by the tax overhaul to be used on a mix of proposals such as funding infrastructure projects like repairing roads and bridges, improving education at community colleges, and promoting manufacturing.

Not only does it address a growing issue for Corporate America but Cramer thinks it will spark growth. His worry, however, is that there's so much acrimony in Washington that the plan won't see the light of day, simply due to partisan politics. Lately, the GOP has opposed initiatives that could be viewed as increased spending.

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If the plan is shot down for that reason alone, Cramer thinks everyone loses - especially investors. "This plan is a definite and rare win for those who own stock in this country," Cramer said.

"I'm hoping the GOP recognizes that there are 90 million families who own stock in some way shape or form and, for once, joins the Democrats," Cramer said.

But the Mad Money host is also not holding out a lot of hope. Unless the tone changes in Washington, Cramer thinks the plan is doomed from the start, simply because of hardline political posturing.

If the temperature in Washington remains as it is now –"I believe this will fail," Cramer said.

Call Cramer: 1-800-743-CNBC

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