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 ...
We are about to see Trump the businessman start to teach DC many things and when the people understand what the DC rats have been doing to us for decades, it will, as Bannon has said, change the political landscape for the next 50 years.
DC has worked to optimize things for itself... not for the people for whom they supposedly had been elected to be servants of.
Donald is going to change that. I chuckle with delight. God has answered our prayers.
Tax breaks, no? Millions of taxpayer dollars! Spending taxpayer money already in paid to play.. Ridiculous.. not to mention, if this is the new deal, it’s corporate cronyism on steroids. Thanking dt for saving jobs, like the CEO couldn’t have chosen for himself. Merry Christmas to ceos, screw you taxpayer.
So you’re against tax breaks for American companies?
If you watched his announcement at Carrier, he actually said the regulations were the biggest problem. He doesn’t need congress to do anything specific...he has the exec authority to remove them, hence the deal.
BLAH Trump ,remember Obama saved or created 100’s of millions of jobs ,D’oh
Go ahead, tell that to the people who almost lost their jobs before Christmas.
The actual key is that Whirlpool is a subsidiary of United Technologies, a key defense contractor. UT wants to be in on the military buildup and the Don explained the facts of life to them. Presto, Carrier stays put.
Then why was the $7 mil incentive required?
It may or may not have been. It’s just that the $7M incentive alone did not tip the scales.
“Ridiculous.. not to mention, if this is the new deal, it’s corporate cronyism on steroids.”
Baloney, Carrier was already to stand to benefit from numerous tax writeoffs that made Mexico more lucrative. One is that building a new factory in Mexico and relocating was a deductible expense. Yes, we gave them financial incentives to leave. SO in that light, I see Trump as simply leveling the playing field.
I can hardly believe what I’m reading. A tax break is lowering the tax liability for the company. Carrier just won’t pay as much tax as they would have.
It is NOT ripping off taxpayers.
Where does this screwed up thinking come from??
“Tax breaks, no? Millions of taxpayer dollars!”
You missed one of the biggest points ... If Indiana had not already put the $7 million tax break on the table, Trump would not have needed to give any special tax breaks to Carrier...he is already going to lower all corporate taxes, get rid of the bad and costly regs and accelerate capital depreciation ...
that is why the biggest part of the story has not been told yet...the company decided to invest $16-30 million in that location ... now the word has come out that the company will be creating over 10,000 new jobs IN THE USA over the next decade.
“Then why was the $7 mil incentive required?”
To balance out the US government subsidies that induce them to leave. Now they can make the decision based upon a neutral position, and also considering the wishes of a giant customer of theirs.
Its a big old free market and Carrier is wanting US Govt work.
Or do you think the US Govt is obliged to buy from foreign nations over US sourced products?
Most states like NC and Ohio have long offered tax breaks to entice companies to locate in the state or to stay. Not new but the billions in government jobs Carrier stood to lose was big.
If these investments are made here, we can compete with the rest of the world.
If these capitol investments are made off shore, manufacturing in the United States will be irreparably damaged.
The 7 million is tax Carrier previously paid but now won’t have to. Do you favor taxing our businesses out of existence?
The reason leftists hate this is because they oppose air conditioning. It burns coal.
Au contraire, grasshopper. I favor cutting taxes for all biz. Not favoring certain businesses over others.
They certainly are going to want to preserve a good tone with the new administration and be awarded a seat at the table when these regulations are drafted. I just doubt very much it is legal to punish companies on the basis of any factor that is not spelled out in the original contract. Of course Trump can say whatever he likes but following through would be a different matter.
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