(Click for video linked to a searchable transcript of this Mad Money segment)
If anyone hates high taxes, it's Jim Cramer. And he's always looking for new ways to do something about them.
Now, make no mistake, Cramer is well aware that tax evasion is a federal crime. However, if you're a company, Cramer says you can lower your tax rate legally—and in the blink of an eye—by merging with a rival that's headquartered in Ireland or another nation with significantly lower taxes.
"That's what this is all about," Cramer said.
Cramer was referring to the acquisition of Covidien by Medtronic for $42.9 billion. The deal shifts Medtronic's executive headquarters to Ireland from Minneapolis.
After the deal is complete, Medtronic will face "a 12.5 percent corporate tax rate rather than the 35 percent rate here," Cramer said.
"That's how it works. You buy a company that's legitimately headquartered in a lower-tax country, even if it does all of its business here, and then you can get out of paying the higher U.S. taxes," Cramer said.
And because the trend promises a significant boost to the bottom line, Cramer sees every reason to believe other companies will follow Medtronic's lead.
For example, Eaton Corp. is also domiciled in Ireland. "It's in Dublin," Cramer said. "I think Emerson Electric or Honeywell could save themselves a heap of taxes by buying Eaton. Plus it has the added advantage of being a terrific company."
Cramer can see similar developments involving Switzerland-based TE Connectivity. "I think it would be a great fit for Danaher. Not only would they be getting those sweet Swiss tax rates, but the company's also a good fit with Danaher's instrumentation business."
"Or how about Chicago Bridge & Iron," Cramer added. Despite the name, the company is actually located in The Netherlands. "Seems like a good fit for Fluor."
In fact, the "Mad Money" host doesn't think it's far-fetched to think a slew of mergers are in the offing, in almost every segment, as companies look to reduce their tax bill by acquiring an overseas rival.
----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Multiple messages from OpenTable deal
Summer savings: Two Cramer faves going on sale?
Cramer: 'Something unexpected may be imminent'
----------------------------------------------------------
"I know it's ridiculous, but there's lot of money at stake," Cramer said. "And the tax code specifically says that every American has a right to avoid paying as much taxes as they can without breaking the law. These moves are perfectly legal."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? madmoney@cnbc.com
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com