Posted on 12/01/2016 1:56:39 PM PST by SeekAndFind
The deal that President-elect Donald Trump and Vice President-elect Mike Pence brokered to keep Carrier jobs in Indiana likely hinges on its parent company's fear about losing business with the federal government, said an official who will play a critical role in approving the agreement.
Trump and Pence will visit Indiana on Thursday to announce they’ve delivered on a campaign promise to keep about 1,000 factory jobs from moving to Monterrey, Mexico. The agreement reportedly includes $7 million in state tax breaks over ten years offered by the Indiana Economic Development Corporation, a quasi-public entity that doesn't require legislative approval for its deals.
But John Mutz, a former Indiana lieutenant governor who sits on the agency’s 12-member board, told POLITICO that Carrier turned down a previous offer from IEDC before the election. He said he thinks the choice is driven by concerns from Carrier’s parent company, United Technologies, that it could lose a portion of its roughly $6.7 billion in federal contracts.
“This deal is no different than other deals that we put together at the IEDC to retain jobs, but the fact is that the difference is that United Technologies depends on the federal government for lots of business,” Mutz said.
“The major factor that’s changed is we had an election,” Mutz said.
(Excerpt) Read more at politico.com ...
Politico...the birthplace of fake news.
Sounds like trump had some negotiating leverage.
UTC is the parent of Sikorsky Helicopters and Pratt & Whitney jet engines.
Want to keep those contracts? Here’s what you’re going to do.
I would expect to see the same treatment for GE.
Wow! UTC blinked for 7 hundred thousand a year in tax breaks and the threat of losing some govt. contracts.
The art of the deal prevails. 7 hundred to a multi-billion dollar company is pretty cheap.
Not tax “breaks”...It’s tax “relief”...
Rush explained the difference today...
The Art of The Deal!
Apply pressure when necessary!
And if that was a bargaining chip, I could care less.
Whatever it takes to keep jobs here. When we lose manufacturing jobs, we lose the multiplier effect in those communities and that means more dependency, more social costs, and more opportunities for bad liberal ideas to thrive.
It basically works out to $700/year per job retained. If the jobs pay $50K per year, they would bring in over $1,600 in state tax revenues. State of Indiana still comes out ahead.
Nevertheless, UTC Aerospace Systems and other divisions (like P&W) are heavily vested as defense contractors. So yeah, I'm sure Mr. Trump leveraged the government's position of influence to help them make their decision.
Art of the Deal, baby!!
GE! wow, pressure on that bunch could fix a lot.
“The major factor that’s changed is we had an election,” Mutz said.
Worth saying again.
Companies like Carrier need to keep in mind the boycott factor. Trump should publicize any future moves like this and let the citizenry exercise its disapproval by boycotts and threats thereof. Bad publicity for Carrier, and other companies would be well advised to sit up and take notice
This is great, now how does he export Hollywood to Mexico???
Trump needs to give companies a 50% take break on each companies salary to employees up to $100K. That will make companies want to hire employees in the us. Don’t count foreign employees or American employees working abroad.
Its called ,"The Art of the Deal".
Last I knew that Sikorsky was a UTC unit. But in looking further you’re right it was sold to Lockheed Martin.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.