Johnson Controls Inc. of Milwaukee has plans to desert the United States by combining with a previous corporate deserter, Tyco International PLC, and setting up a headquarters in Ireland. Credit: Mauritz Antin/EPA

Johnson Controls Inc. of Milwaukee has plans to desert the United States by combining with a previous corporate deserter, Tyco International PLC, and setting up a headquarters in Ireland.
Credit: Mauritz Antin/EPA

If you want an example of how bizarre U.S. tax laws can be — and how companies can game the system — look no further than the recently announced deal for Johnson Controls Inc. of Milwaukee to desert our country by combining with a previous corporate deserter, Tyco International PLC.

Tyco is run out of Princeton, N.J., but for tax purposes it is based in Ireland, where the combined Johnson Controls PLC will be based.

This isn’t your standard “corporate inversion,” as polite people call these kinds of tax-avoiding deals. Technically, it’s not even an inversion. Rather, it’s an especially aggressive transaction that, among other things, will let Johnson game the tax system […]

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