The only way to stop U.S. enterprises from fleeing abroad is for Washington to reform corporate tax laws to make American companies more competitive, anti-tax crusader Grover Norquist said Wednesday.
The founder of Americans for Americans for Tax Reform said President Barrack Obama and Senate Minority Leader Harry Reid have blocked tax reform because Republicans have not been willing to agree to tax increases.
"Good ideas that everybody agrees on in Washington, D.C., are not known as passed legislation. They're known as hostages," Norquist told CNBC's "Squawk Box."
"He's been holding tax reform hostage," he said.
On Wednesday, Pfizer and Allergan announced they would abandon a $160 billion merger after the U.S. Treasury Department announced new rules to curb so-called inversions, or deals in which American companies buy a foreign firm in order to shift their business to a more attractive tax domicile.