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 tax breaks are available to Carrier not for staying, but for making new capital investments. The tax payer doesn't get a reduction in taxes on existing property, but rather a phased-in reduction on the taxes that would otherwise be payable on new property.
That’s $35,000,000 in payroll.
But the TRUE COST to the employer once they pay HALF of YOUR Social Security and Medicare Taxes and Workers Comp, Disability,Unemployment Insurance... will be almost DOUBLE!!
Realistically their Payroll Cost should be around $60 Million using your assumptions.
I believe that during the campaign he talked about lowering the corporate tax rate. This is a good start. :-)
If this kinda thing worked, Upstate NY would be flouishing. It’s not. And won’t be. This bribe w/OPM is indeed a bandaid. And an insult to voters’ intelligence.
The State of IN is letting Carrier keep their OWN MONEY instead of taxing it from them and a “Libertarian”, just like the buffoon Left, is crying “cronyism”?
Really this stupid?
CORPORATIONS DON’T PAY TAXES;
THEIR CUSTOMERS DO.
Spoken like someone whose job isn’t on the line at Carrier.
It IS cronyism. They’re still offshoring over half the jobs, and for that they get rewarded with lower taxes. It’s a pure PR move, everybody gets to pretend Carrier isn’t leaving, and meanwhile they’re leaving.
https://wattsupwiththat.com/2016/07/24/john-kerry-air-conditioners-as-big-a-threat-as-isis/
John Kerry: Air Conditioners as Big a Threat as ISIS
We have stupid idiots in charge presently... ‘dirt worshipers’ lying about man made climate change... And then there is their evil twin that present government as god who gives life, liberty, and pursuit of happiness by law... and the power of taxation/mandates.
How much in taxes does indiana gain by having those 1000 people employed and not drawing unemployment benefits ?
What is the problem with the Sate of IN allowing Carrier to keep their own profits, instead of taxing it away from them for the next 10 years, in order to keep the jobs here?
I thought libertarians believe taxation is theft? Guess not when Trump makes the deal
Thank you for doing the math.
That’s where I was going.
I don’t have the numbers right now, but wind farm developers demanded and got huge tax breaks from locals and feds
So what! This happens all the Time! Even here in NC where leftist are trying to take over!
https://edpnc.com/incentives/job-development-investment-grant/?gclid=COamsZfL09ACFVdMDQodGH4Ipw
Yes corporations do PAY taxes and then COLLECT THE COST OF THEM FROM THEIR CUSTOMERS.
Are you for real?
If Carrier leaves, it pays zero taxes - if it stays, it pays $7 Million less over ten years ($700K/year) but still payes taxes, maintains jobs and remains an asset for the local economy.
Which scenarios "effs" the taxpayers?
Now add in the economic impacts of the $16M in upgrades Carrier is looking to do, and you see why this probably makes sense for Indiana.
Indiana’s coffers will not be hurt at all by this “deal”.
Take 1000 workers and pay them all $2000 a month in unemployment benefits for a year and the state loses $24 million dollars. And that is just the tax savings for the first year! Then if they can’t find replacement jobs, then they get food stamps and welfare and free lunches for their kids indefinitely.
Trust me, this is a huge benefit to the State of Indiana taxpayers. Not to mention the ongoing taxes that these otherwise unemployed Americans will continue to pay.
So your concern for the taxpayers because you think this is not “fair” is misplaced. This is a Yuge Deal!
So the taxpayers still getting effed Donald if this is your deal?
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Evidently you can’t count past three. How many times does a dollar turn over in a local economy and what are the taxes from that turnover? ZERO equals ZERO when the jobs are GONE!!!
An “investment” of $700,000 per year in tax revenues will AT THE BASELINE yield FIVE MILLION Dollars per year (1000 jobs x 50,000 per job)into the local economy. Pretty damn good investment in my view.
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