Warren Buffett said "you are getting more mergers that are tax driven" and Congress is "likely to address" the issue.
In response to a question about Pfizer's bid to buy the foreign drug firm AstraZeneca, partially to reduce its U.S. tax bill by moving overseas, Buffett said the trend "will gather momentum and my guess is that when you get to companies of this size, of this prominence, and with the speedup of momentum, my guess is that Congress, one way or another, addresses this. But that could go either direction in how they address it."
Congress might, he said, just focus on the narrow section of the tax code that allows a company that merges to move its tax domicile, or "that forces them to rethink all corporate taxes, we'll find out. But I do think it will get attention."
"This whole thing on the foreign situation, I think, will cause one hell of a fight in Corporate America."
Buffett said he'd like to see all companies pay the same tax rate, but those that would see their taxes go up would "squeal" more than the companies that would get a tax reduction.