Posted on 12/01/2016 9:46:13 AM PST by jaydubya2
Indiana officials agreed to give United Technologies Corp. $7 million worth of tax breaks over 10 years to encourage the company’s Carrier Corp. unit to keep about 1,000 jobs in the state, according to people familiar with the matter.
The heating and air conditioning company will invest about $16 million to keep its operations in the state, including a furnace plant in Indianapolis that it had previously planned to close and shift...
(Excerpt) Read more at wsj.com ...
The Art of the Deal
NYS gives all kinds of benefits to businesses who rob the system by not living up to their obligations. Yes...of course they know the benefactors.
Typical and I’ve seen it done in my state, too. Both the company and the state need to find a more permanent solution because this is only a Band-Aid.
The State of IN is letting Carrier keep their OWN MONEY instead of taxing it from them and “True Conservatives”, just like the buffoon Left, is crying “cronyism”?
Just how stupid is the “Conservative” purity choir?
We’ve got all those Gop governors and legislatures...we can fix this country
So the taxpayers still getting effed Donald if this is your deal?
The State of IN is letting Carrier keep their OWN MONEY instead of taxing it from them and “True Conservatives”, just like the buffoon Left, is crying “cronyism”?
Just how stupid is the “Conservative” purity choir?
They won’t be so pure and perfect when it is THEIR job that is outsourced to Mexico, illegals and h1b’s!
That's $35,000,000 in payroll.
How much of this is paid in taxes?
Assume a 15% bracket that's $5,250,000 in Federal Taxes
Assume a 6% local sales tax...that's 2,100,000 in local taxes.
That leaves around $25,900,000 of income to be spent at local businesses in that area.
Sounds like a decent deal to me.
$7 million..... over 10 years
What a deal compared to putting 1000 workers and their families and employees of all the businesses they support on unemployment or food stamps and subsidies to supplement low paying part time work
How much taxable revenue will spin off from those jobs, healthy communities of employed workers, and all the other businesses touched by the presence and spendin gpower of those employees
This is fairly typical. Large companies can constantly threaten to leave (even to another state) and try to get tax breaks - sort of like NFL teams that threaten to leave unless the public builds a new stadium.
On paper, the city/state still benefit, when the payroll taxes and future property taxes are all penciled out. However, often the company does not fulfill its obligations with job creation or retention, and the city/state are left with the messy business of ‘calling the note’, so to speak...or just losing out if they don’t have the stomach for that.
I have actually seen a magazine geared towards which states have the most breaks.
I think its overall a bad idea to have states and cities compete with each other with tax breaks (and by default treating the rest of us unequally under the tax law). But I think it makes sense at a national level, to keep companies from leaving the entire country. Now the companies would still want an incentive to stay, and one of the only things that can be done at the federal level is a ‘stick’ approach with tariffs.
You can go on with that multiplier...now, inagine what we’d be paying in unemployment and other welfare if they lost those jobs...and it won’t be so easy for them to find new ones
That’s chump change for a corp that size. A fig leave to for them to hide behind, IMO.
Guys, this hasn’t worked for Upstate NY.
Taxes are the leading cause of corporate flight. Fact is, the founding fathers knew that income taxes are ruinous to a country.
Do the math just on the jobs alone. 7 million over ten years equals a cost of $700,000 per year.
1000 Jobs at $50,000 per year equals 5 million PER YEAR into the local economy. That pumps at least $50,000,000 into the US economy over ten years.
A Cost of 7 Million for a gain of 50 Million is certainly a good investment.
1100 jobs go to mexico
carrier gets $7 million to keep 1,000 remaining jobs here for 10 years
trump fails to tell carrier he will impose 35% tariff as he promised for 15 months in his campaign
Some conservatives celebrate the “big win”
So what is that?, the cost of One Obama vacation
That's always been the answer to the problem of U.S. businesses moving their operations out of the U.S.: stop taxing them out of profitability and strangling them with excessive regulations. Most Republicans understand this, and clearly Donald Trump does, too. What a refreshing change to have a President-elect who's willing to act on it!
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.