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Hillary Clinton Says Johnson Controls-Tyco Inversion Deal Is ‘Outrageous’

January 25, 2016

AMES, IA - NOVEMBER 15:  Democratic presidential candidate Hillary Clinton greets Iowans during the Central Iowa Democrats fall barbecue November 15, 2015 at Hansen Agriculture Student Learning Center of Iowa State University in Ames, Iowa. Clinton continued to campaign for the nomination from the Democratic Party.  (Photo by Alex Wong/Getty Images)AMES, IA - NOVEMBER 15:  Democratic presidential candidate Hillary Clinton greets Iowans during the Central Iowa Democrats fall barbecue November 15, 2015 at Hansen Agriculture Student Learning Center of Iowa State University in Ames, Iowa. Clinton continued to campaign for the nomination from the Democratic Party.  (Photo by Alex Wong/Getty Images)
Hillary Clinton at the Central Iowa Democrats fall barbecue on November 15, 2015 in Ames, Iowa. Photograph by Alex Wong—Getty Images

WEST DES MOINES, IOWA, Jan 25 (Reuters) – Hillary Clinton called the planned inversion by Johnson Controls (JCI) and Ireland-based Tyco (TYC) “outrageous,” and said as president she would block such moves using an “exit tax.”

“These efforts to shirk U.S. tax obligations leave American taxpayers holding the bag while corporations juice more revenues and profits ,” Clinton said in a statement. “I have a detailed and targeted plan to immediately put a stop to inversions and invest in the U.S., block deals like Johnson Controls and Tyco, and place an ‘exit tax’ on corporations that leave the country to lower their tax bill.”

Johnson Controls announced on Monday a plan to buy Tyco for $16.5 billion, which the companies said will save $500 million in taxes in the first three years and an additional $150 million a year through tax synergies.