George W. Bush And Laura Bush Speak At Veteran's Employment Opportunities Summit In D.C.
U.S. Chamber of Commerce President and CEO Thomas Donohue Photo by Chip Somodevilla — Getty Images

Chamber of Commerce Proposes Suing Obama Over Tax Inversion Rules

Apr 06, 2016

The head of the largest U.S. business lobbying group on Wednesday floated the idea of suing the Obama administration over new tax regulations designed to keep corporations from moving their headquarters offshore to gain tax benefits.

U.S. Chamber of Commerce President Tom Donohue said on CNBC that among the questions he has asked people about the rules are, "What is the scope of their authority, and is it something you'd sue about?"

Donohue did not immediately answer those questions. He added, though, that a lawsuit would take a long time and corporations would need to deal with the regulations "for a while."

The regulations, issued by the Treasury Department, have thrown into doubt the viability of tax-evading deals known as inversions and have already felled a would-be $160 billion merger of U.S. drugmaker Pfizer (pfe) and Ireland-based Allegan (agn).

A Treasury Department spokeswoman said on Tuesday that staff there had taken steps to ensure their plan had a strong basis in law and believed that their authority to act was clear.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions