The rejiggered corporate structure will allow the new company to reel in $150 million in tax savings.
However, saving taxes was not the primary motivator for the deal, the company said. Though the merger includes the tax shift, "it's not about the foreign domicile," said company spokesman Fraser Engerman. "This is all about strategy."Hillary Clinton Slams Johnson Controls-Tyco Deal
"Here is as direct an example of what's wrong with the thinking and acting of an American corporation that we could get," Clinton said.
She told supporters at a bowling alley here that "I will do everything I can to prevent this from happening, because I don't want to see companies that thrive, use the tax code, the gimmicks, the shenanigans...to evade their responsibility to support our country."
Clinton said that during the economic and financial crisis of 2008, Johnson Controls was among the companies "that begged the administration and the Congress to help bail out the auto industry."
Said Clinton: "Johnson Controls goes to Washington, says, 'Please American taxpayers, save us!'
"And the auto industry, the suppliers, the jobs, were saved. OK. But just in the last few days Johnson Controls announces it's going to pretend to sell itself to a company in Europe to escape paying taxes to the United States government. It's called an IN-version. I think it should be called a PER-version."
Clinton told the audience that the company was happy to accept their help during the crisis.
"Now they want to move overseas for the sole purpose of escaping their fair share of taxes to support what made them be a company that was successful in the first place — the rule of law, the contract system, our judicial system, the support we give to training people, all that you and I have contributed in previous generations. They are willing to walk away in order to pay a lower tax instead of doing what they should to support our country to grow and be prosperous and strong in the future and it is wrong."
Clinton added: "We've got to take all of these abuses on...We have to go after everybody who is trying to undercut American prosperity and America's future."Johnson Controls Subsidy History
|Subsidy Summary||Subsidy Value||Number of Subsidies|
|Federal (grants and allocated tax credits)||$309,118,823||13|