Posted on 12/01/2016 10:04:22 AM PST by CptnObvious
Did Trump Just Save Carrier Jobs Without Federal Tax Cuts?
No, he convince United Technologies that there would be the tax cuts and regulation reforms that he promised.
Yes he did. For the record he won’t be President till Jan 20, 2017. He can then work to lower the Corporate raping we did to our employers.
The way things used to be done is working State Gov.
When Oregon wanted Intel to setup a design center there, they gave them 10 years of tax breaks.
Intel moved 15k employees to Oregon.
Cumo tried the same thing in upstate NY.
No one wanted to move to NY so it failed.
The state of Indiana just announced about 7 million in tax breaks for Carrier.
http://www.freerepublic.com/focus/f-news/3500281/posts
Trump used Pence to give tax payer money from Indiana to Carrier. That was one reason why Pence hasn’t resigned yet. Trump is a smart cookie, but I think Pence is holding his own.
I agree. Incentives are a one-time thing, so I think Trump convinced them that over the longterm he would work with Congress to make the US a better place to do business.
Sort of. There are millions in financial incentives in it for Carrier, but I think they all come from Indiana.
Did they get an outright grant (which would be what you said) or a tax break (get to keep more of their own money)?
“7 million in tax breaks for Carrier.”
That’s over ten years...the same ten years of wages input into the local economy is ten times the $7 million/
Don’t forget that United Technologies is Carrier’s parent company that does a lot of govt. contractual work. Which could dry up if Carrier left.
I am generally opposed to state and local tax incentives for companies to relocate to or remain in a particular jurisdiction. In this case, however, 1000 jobs x $50,000 per job x 3.23% state tax rate = $1,615,000 per year in state tax revenue. So the tax break will pay off in about five years.
He’s not President yet. The tax cuts were state taxes. Thanks Governor Pence. Great team!
The usual approach is a tax rebate based on the employment level being maintained or increased over the agreement period. The amount is based on that state’s employment tax rate and is rebated back with an application to the tax commission and attachments of supporting documents on the taxes paid. IOW, there is no advance payment. It is only paid upon proof of performance to the agreement.
From a conservative’s perspective:
* Carrier can keep more of THEIR money and run a profitable business in the US
* 1000 US workers have jobs. Will pay taxes and won’t collect unemployment
From a liberals perspective:
* The government will allow Carrier to keep more of the people’s money to make the CEO richer
* 1000 US workers are being abused to make the CEO rich and the government is paying for it.
The one other thing that Trump brings is this...
What is the NUMBER ONE THING we need.. a massive growth of high pay private sector jobs
Who creates private-sector jobs? Private sector businesses...
And what is Trump but one of the most successful private-sector businessman in the country....
He going to intuitively understand what a business needs and be able to make that deal in a way a politician would never understand
Trump is not in this for the money..he has that.. so Trump movaation is going to be to win.. he’s an athlete he’s a competitor he likes the game of winning..and we win when he wins
Sorry, but I disagree. Tax BREAKS are not the same thing as GIVING TAX PAYER MONEY. BIG difference.
“1000 jobs x $50,000 per job x 3.23% state tax rate = $1,615,000 per year in state tax revenue.”
Right...also the extra community business taxes paid to the state based on the extra spending to local businesses.
I am generally opposed to state and local tax incentives for companies to relocate to or remain in a particular jurisdiction. In this case, however, 1000 jobs x $50,000 per job x 3.23% state tax rate = $1,615,000 per year in state tax revenue. So the tax break will pay off in about five years.
...........................................................
And that does not count the benefits to the local economy which will produce more taxes from local businesses that also pay taxes. Lots less in food stamps and unemployment payouts by the govt. as well. A WIN WIN ALL AROUND!
“not the same thing as GIVING TAX PAYER MONEY. BIG difference.”
Agree...a company named Solyndra:
Solyndra received a $535 million U.S. Energy Department loan guarantee, the first recipient of a loan guarantee under President Barack Obama’s economic stimulus program.
In September, 2011, the company ceased all business activity, filed for bankruptcy under Chapter 11, Title 11 of the United States Bankruptcy Code, and laid off all employees.
:
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