I hope the money is predicated on them staying for at least 7-10 years.
So? Obama gave Solyndra 700 million and they folded. What’s your point, Jacob?
$700,000/year in tax relief is pretty cheap to keep the jobs here. If each worker pays $1000 in income taxes per year, it pays for itself, and that doesn’t figure in the costs in unemployment comp, welfare, and other transfer payments that would have occurred had the company left.
That 7 million in tax breaks over a decade is very inexpensive compared to some of the tax rebates Texas has given companies to relocate here. We should have had Trump doing the deals instead of Rick Perry.
Trump mentioned that UTX could find itself on the short ends of many federal contracts, too.. HA!
Has anyone added up the income tax, sales tax, property tax, corporate tax, and other revenue the state will get from 1000 additional jobs? That should certainly be part of the calculation. Not to mention the “social safety net” costs that are being avoided.
$7 million in tax breaks vs $700 million in taxpayer funds as is usually the undernote to these types of stories. A better question is: Why? Why is that one company so special that they can forgive some taxes yet the vast vast majority of businesses in the state still have to pay it?
If lowering taxes, as shown here, keeps or raises employment, why not blast out those taxes as quickly as possible?
That’s a question I’d like to see on every news program in America.
Of course, in this case, odds are that Carrier split the baby, choosing to keep one part in the US and retool the plant and send the rest (and likely growing) part to Mexico to make up for the extra costs of the US plant.
In the end, the only thing that’s going to cut this are tariffs. Either that, or an entirely different mindset for taxation.
Confiscating less is ‘giving’.
Hey Donald, stop the winning! Its happening so soon! It’s tiring me out!
Letting Carrier KEEP THEIR OWN MONEY, rather then have the State of IN tax it away from them is a VERY Conservative position.
Face it, this is just more of the usual #Never Trumper whining butt hurt.
That comes to well under a $7,000 in incentives per employee. That isn’t a hard dollar. The jobs and the money stay in Indiana where they generate taxes that wouldn’t be generated if the jobs left. The icing is the 16 million in new money that will be spent and taxed in Indiana. Only socialists have trouble with that kind of math. The average cost under the few programs that have “created jobs” has exceeded $125,000 per job per year. Anybody who want to look that gift horse in the mouth again?
Apple pay no tax to Cupertino and Santa Clara county. Every five years Apple gets tax free holidays extension. Same is with other Silicon Valley companies.
Compare this to these miserable failures under Obama in the name of his climate religion (we can pay for the Carriers many times over):
http://money.cnn.com/2012/10/22/news/economy/obama-energy-bankruptcies/
This doesn’t even include the federal subsidies to lower the price of electric cars and solar panels artificially.
Tax “Incentives”
And if any liberal gives you any lip regarding this, point them to what SanFrancisco did to keep Twitter within the city limits.
http://www.sfgate.com/business/article/Companies-avoid-34M-in-city-taxes-thanks-to-6578396.php
Also, the fact that the government is getting $7mils less in taxes is a big side benefit. The more we starve the beast the better.
Cash for clunkers, Auto bail outs, please STFU Jacob.
Thank you dweeb.
Good. as it should be.
I lower taxes and businesses stay in my state. I raise taxes and businesses ____________________?
Tax relief is a good way to keep business.
Trump can probably give Carrier MUCH MORE than $700k per year, just by GETTING THE GOVERNMENT OFF THEIR BACKS. I suspect that had much more to do with them staying.
There is a HUGE amount of room for Trump, starting with refrigerant and efficiency standards, and God knows what else...what he can do is virtually endless.