High corporate taxes are hindering health care in the U.S., two health-care CEOs said Thursday.
"There's no question that U.S.-based companies are at a huge disadvantage in the global competition for assets, IP assets, for talent," Kenneth Frazier, CEO of Merck, told CNBC's "Squawk on the Street." "I would hope the government would look at this transaction as a watershed and say we have to fix the non-competitive U.S. tax system."
The corporate tax rate in the U.S. currently sits at 40 percent, the second highest behind the United Arab Emirates. In fact, the high tax rates were one of the factors for Pfizer to relocate its global headquarters to Ireland — where the tax rate is 12.5 percent — once its acquisition of Allergan is complete.