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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCarrier played Trump, taxpayers, more to come
Carrier getting tens of millions of dollars in incentives, while still outsourcing 1,100 jobs to Mexico.
Socializing costs, Privatizing profits
The Financial Times reported:
Carriers decision to cancel plans to move 1,000 jobs to Mexico was on Wednesday painted as a trade-off for planned tax cuts, as one of Donald Trumps economic advisers said he hoped other US businesses would see the deal as a beacon signal of a climate where they can keep more jobs at home. Donald Trump secured a victory after successfully pressuring Carrier, a unit of United Technologies, to change its plan to move 2,100 jobs to Mexico to cut costs. Carrier said it would keep about 1,000 jobs in Indiana, after negotiations with Trump representatives including vice-president elect Mike Pence who offered unspecified incentives.
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When asked whether the deal would set a precedent for companies to demand a tax break in exchange for keeping jobs at home, Anthony Scaramucci, a Trump adviser, said: Companies should expect a tax break. We have the highest corp tax rates in the industrialised world, we have to get those corporate tax rates down to a competitive position?.?.?.?Im hoping that every CEO in America is getting that beacon signal from the new Trump administration.
What about the other 1,100 jobs that are still going to Mexico? Oh, those are still leaving.
The troubling aspect of the bad deal that Trump cut for taxpayers is that his adviser said that they expect every company in America to go after the same kind of deal. The idea that the US has the highest corporate tax rate of anywhere in the world is not true. While top US corporate tax rate is high, but Republicans have been exaggerating the damage caused by this fact for years.
The goal of the Trump administration appears to be a nation where corporations pay no taxes. If corporations arent paying taxes, and the wealthy are getting tax cuts, the tax burden will fall on the shoulders of those who have the least to pay the most.
If corporations around the country follow Carriers lead, state and local economies around will be damaged, if political leaders give in to extortion threats.
The bottom line is that Trump and Pence got played by Carrier. The company is still outsourcing more jobs than are staying, but for giving Trump some good publicity, they are being rewarded with tens of millions of dollars in incentives that Indiana taxpayers are now on the hook for.
Trump got played, and even worse he set a precedent for even worse deals to come.
no_hypocrisy
(46,024 posts)I'd be threatening to move and cut jobs to cut those goodies.
HAB911
(8,867 posts)The GOP runs the state and will give away their grandmother and build access roads to corporations and build stadiums for billionaires and we foot the bill.
Demit
(11,238 posts)As you note, Trump gets good publicity out of the deal. "Trump saved jobs!" will be the only takeaway for his fans. They won't care that it will be taxpayers who end up paying for it.
HAB911
(8,867 posts)to feel the hand in their pocket
BumRushDaShow
(128,474 posts)Achilleaze
(15,543 posts)tanyev
(42,516 posts)Nitram
(22,765 posts)We know that. Wait until his supporters figure it out. Unless Trump manages to persuade them that every failure of his is due to the media/liberals/GOP Establishment etc.
spanone
(135,792 posts)Initech
(100,038 posts)Big companies get rich and we get fucked. But it doesn't matter because... jobs.
n2doc
(47,953 posts)The real point of the exercise was to give the compliant media a fairytale story about how tRump was 'keeping his promises' and 'being a strong leader'. NPR has been constantly spewing this crap. No mention is made of the jobs leaving, or the nearly $1000/person per year cost to 'keep' the remaining ones there.
jmg257
(11,996 posts)The $5.5 million that went to Remington and its parent company, Freedom Group, led to the consolidation of manufacturing plants in Massachusetts and Connecticut to Ilion, N.Y., where Remington has manufactured firearms for nearly 200 years.
They were down to close to 600 jobs and now theyve more than doubled that, says Sen. Jim Seward, Ilion's representative in the legislature. These are good manufacturing jobs and obviously we want them to stay."
http://innovationtrail.org/post/millions-incentives-go-firearms-industry-new-york
Good for Cuomo et. al. to keep them there then - 2013. (but they have since moved to Alabama "due to gun laws" .
Huh - companies using leverage to gain tax breaks - who knew?