The federal government gave Johnson Controls a bailout in 2008 to avoid certain bankruptcy, along with its customers, the large automakers – General Motors and Chrysler. This week, Johnson Controls renounced its United States corporate citizenship by selling itself to Tyco International, based in Ireland. This deal was struck, in large part, to reduce an annual tax bill by $150 million.
1. What other large companies does the article mention as part of exodus of companies seeking lower tax havens?
2. Explain the term “corporate inversion.”
3. Between 1992 and 2009, what amount of tax breaks has Johnson Controls received from Michigan?
4. What does the author point to as the solution for keeping American companies in America?
Sorkin, A. (2016) A Tidal Wave of Corporate Migrants Seeking (Tax) Shelter. The New York Times, Jan. 25 (Retrievable online at http://www.nytimes.com/2016/01/26/business/dealbook/a-tidal-wave-of-corporate-migrants-seeking-tax-shelter.html)