OSHKOSH — Sen. Ron Johnson (R-Wis.) said this in response to reports that Johnson Controls and Tyco will merge and base the combined company in Ireland for tax purposes:
“I appreciate the fact that Johnson Controls will maintain its operational headquarters in Wisconsin after it acquires Tyco. I am disappointed, but not surprised, that it is doing what Tyco did a few years ago and taking Ireland as its domicile for tax purposes.
“Ireland’s top corporate tax rate is 12.5%. The top U.S. corporate rate is 35%. That’s the developed world’s highest rate, and Washington levies it even on income that companies earn in other countries. By making Ireland its tax home, Johnson Controls will still pay U.S. and Wisconsin taxes on profits it earns in America, but its overseas earnings will be subject to the far more competitive Irish tax law.
“As one of my Democratic colleagues said during a hearing on exactly this topic, ‘It’s just math.’ America needs to get its math right by scrapping our current tax code and replacing it with a very simple and globally competitive one. This will help American businesses, the Americans they employ, the Americans whose retirement saving are invested in those companies, and all the American families struggling in the weakest economic recovery since World War II. Getting the math right means more growth, more prosperity for all Americans — and more federal revenue.”