Posted on 12/02/2016 8:06:43 AM PST by MaxistheBest
In his speech at Carrier yesterday (video embedded below), Donald Trump revealed some information that should comfort those market purists worried about America insulating itself from global markets and thereby falling behind overseas competitors. He revealed that the reported $16 million is likely to end up a much higher figure because the company is committing to next-generation manufacturing.
It is quite understandable that a lowball figure has been used by Carrier, as they want to limit what they may be on the hook to spend. They can always spend more, and the banter Trump threw at the company’s president indicates that he and Trump did discuss the nature of the reconceptualization of manufacturing that the company had (obviously) already studied and compared with the financial results of moving the Indy factor to Monterrey. Until Trump put his thumb on the company’s scale, that calculus favored Monterrey.
Unlike Barack Obama, Trump understands how businesses make their decisions: on the margin. Undoubtedly, the $7 million in tax relief that the State of Indiana applied to Carrier (which, but the way, is a common sort of thing for states to do to recruit or keep factory jobs) helped in the calculus. But if I were a betting man, I’d wager that Trump discussed the regulatory costs the factory, Carrier, and its parent United Technologies bear and stated bluntly that those costs will go down. And it would not surprise me if he also mentioned tax reforms, including perhaps investment tax credits and other measures that will make the $16-million (or whatever the final bill is – much higher, I would wager) investment much cheaper.
(Excerpt) Read more at americanthinker.com ...
“The actual key is that Whirlpool is a subsidiary of United Technologies, a key defense contractor.”
I’m sure that’s a part of it, but Trump can’t use that on most corporations. When Trump said Apple will be making iPads in the USA he was laughed at. We should all understand by now that when Trump says something like that, he has the ideas and policies to back it up.
He is developing a “new capitalism”...one that protects American jobs first and he can do it with a combination of his policies (full scale, full spectrum energy development, low regs, low taxes, favorable capital reinvestment rules...and yes a dose of public shaming) welded to the incredible gains in automation, just in time inventory, new materials, etc.
Since every manufacturing job has a multiplier effect in the local economy of at least 4X, incentives to retain manufacturing jobs represent tremendous leverage. Save a job and you avoid 3-4 times that much negative impact. Drive through any small US city that has lost factories and count the number of empty storefronts and “For Sale” house signs if you doubt this. It is a fact.
What in hell are you talking about???
Whirlpool is a public company as is UTX, with NO relationship to one another.
IO realized last night that Trump is not just going on a “Thank You” tour...he is going to tout the Carrier deal a lot....he is going to explain to the American worker that they should not only expect things to change, but they need to demand that DC gets on board.
The tour is more about putting the DC hacks on notice...get behind the American worker or he will use the bully pulpit to expose you.
“So you’re against tax breaks for American companies?”
I’m opposed to specific tax breaks for specific companies.
Tax rates should be simple, and objective. Not full of exceptions, exemptions, and special deals.
“Corporate Cronyism on steroid”
Which screaming moron on the radio sold this slogan to you brain dead parrots?
It is utterly amusing to me to see supposed “Libertarians” and self styled “True Conservatives” busy mouthing the Marxist economic dogma that all economic output is property of the State and any time the state takes less it is a “Government subsidy”. The dogma that any reduction in government taxation MUST be “paid for” by increased taxation on others is utterly absurd nonsense completely at odds with our system of Government.
No you foolish children. In our system, the State is granted revenues by the people as a collective good. It is their property granted TO the Government not vice versa. It is up to the voters in IN to render the judgment on their Representatives at the voting booth if this was a wise move or a foolish move for the collective to reduce tax burdens on Carrier in exchange for the collective good of keeping the 1100 jobs.
Your basing your argument on a fraudulent Marxist premise that the State is the owner, of all economic output and thus any reduction of taxes must be “made up” elsewhere. NO the people, via the avenue of their elected Representatives, can simply choose to give the state less of THEIR revenue at any time.
“For Sale” house signs if you doubt this. It is a fact.”
I agree with you 100%...i grew up in MA. and saw the cities of Lowell and Lawrence lose their textile and shoe manufacturing base overnight. They were ghost towns for decades...now they are just not taxable government agencies, non taxable schools and non taxable government housing ... I call them “guilt cities”....full of immigrants, refugees and professional low income blood suckers, non of whome contribute to the economy.
So in your world the Government should never let anyone keep any of their OWN TAX MONEY because that is “subsidies” to taxpayer A at the cost of other taxpayers?
When did “true Conservatives adopt this Marxist Economic theory of Goveermnt is the owner of all economic output?
So in your world the Government should never let anyone keep any of their OWN TAX MONEY because that is “subsidies” to taxpayer A at the cost of other taxpayers?
When did “true Conservatives” adopt this Marxist Economic theory of Government as the owner of all economic output?
Please read Thomas Sowell, he makes economics easy to understand. The corporate tax is a fraud, just like companies pay 1/2 of social security. The truth is us working individuals pay for all of it. You just don’t see it on your pay stub.
And the saddest part is the generations of families who thought the American dream was still based on owning a home, building equity and working in the same community, only to have the government dump thousands of low lives into your neighborhoods and destroying housing values overnight.
Letting people keep their OWN money rather then taxing it way from them is GOOD. It is the heart of Conservatism.
You not going to undo 100 years of creeping socialism by stamping you feet and holding your breath demanding ideologically perfect political dogmas. That mindset is EXACTLY why you “Movement Conservatives” have been the most political ineffective group in US History. You all are so busy whining about everything not being dogmatically ideologically perfect you have accomplished nothing politically since 1980.
Rather the cling to your day dreams of some mythical perfectly ideologically pure fantasy land learn to live in the REAL world of the politically possible.
What most Americans don’t understand is that there is an entire discipline of large business that they are not aware of but that Trump is a master of. He knows how to turn things around, he knows exactly what CEOs of large businesses face and what drives their decisions.
Without exaggerating, I think this is going to be a presidency for the history books. Trump will change forever the expectations that Americans will have of future presidents.
They all worship the same screaming "Libertarians and True Conservatives" on the TV/Radio and at websites who cannot comprehend the difference between a TAX BREAK and a "Subsidy". This has more to do with lingering butt hurt that Trump won and Cruz lost then any real political principal. They are still busy looking for things to whine about because Cruz lost. The Political Purity Choir directors on talk radio and at various "Movement Conservative" websites are busy screaming these ignorant slogans at them. Like the good little parrot they are, the "#Never Trumpers" are just rushing around the web regurgitating these ignorant slogans with zero real understanding of what they are talking about.
Free Traitors™ love income taxes. The love all taxes except consumption based taxes like tariffs. Why? Because they are globalist haters of America.
Marx wrote about this 150 years ago.
“there is an entire discipline of large business”
Yup..unfortunately the underpinnings of a true capitalistic economy have been eroded over the last 3-4 decades..Obama spent 8 years ushering in an Oligarchic system and Clinton would have completed the transformation ...we dodge a bullet...but large business, like Trump said and this is what he meant, will turn o a dime to his new economy.
This is what the hell I am talking about.
I am against tax breaks for American companies.
Tax policies should apply for all American companies equally across the board. Special tax breaks are the core of the corporate cronyism system.
Why the hell are you even on this forum. You are nothing more than a but hurt cruzer, a never Trumper. maybe you belong over at GOP briefing room. Lots of cruzers there and never Trumpers. If you want to bad mouth Trump everyday, why not do it where it is appreciated, it is not welcome around here.
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