Politics

Should politicians criticize businesses?

Is anti-business good political strategy?
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Is anti-business good political strategy?

Anti-business rhetoric from politicians has gained momentum recently with both Republicans and Democrats alike denouncing corporations.

Amid the comments President Barack Obama chimed in, saying he is "very pleased that the Treasury Department is taking new action to prevent more corporations from taking advantage of one of the most insidious tax loop holes out there," as the agency decided to crack down on inversions.

Many pundits have criticized the Treasury's move and called for laws to change, saying that America's statutory taxes are too high. Among the contrarians was the CEO of Allergan who said that the government targeted its $160 billion merger with pharmaceutical company Pfizer. The deal was said to be the largest ever in the industry.

"We built this deal around the law, the regulations, all the notices that were put out by the Treasury," Brent Saunders said in a recent interview with CNBC, noting that last-minute changes to regulations are "un-American."

Pennsylvania Avenue at dusk, Washington D.C.
Congress should make the call on inversions: Expert
Brent Saunders, president and CEO of Allergan.
Allergan CEO: Merger with Pfizer was targeted by US government

Meanwhile, market watchers continue to question whether anti-business rhetoric is a good political strategy.

Jimmy Williams, host of DecodeDC, a political podcast, told "Closing Bell" that while some of the political criticism is overdone, it's OK to voice opinions against businesses.

"It's fine to have a populous message," he said Friday. He argued, however, that a clear distinction should be made between corporate and business America.

"Corporate America only provides like anywhere from 10 to 12 percent of actual tax revenue coming in to the federal government," he said. The rest, however, are "individuals who own businesses ... that employ millions and millions of people. Those aren't bad people, and they're not doing bad things, they're doing great things and they are contributing to the economy."

Conversely, Jim Pethokoukis of the American Enterprise Institute told "Closing Bell" that a business that finds its way to the top by amassing wealth illegally could be criticized. Still, it will not be responsible for politicians to criticize businesses that are innovative, such as Apple and entrepreneurs like Elon Musk.

"Businesses that become rich and powerful because of bailouts, because they're really good at lobbying and getting special tax breaks," he suggested.