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 ...
If Carrier knew that Mexican made units would cost them an extra 20%, they'd stay put and expand their factories.
Of course, for other companies, such as Apple, who have a worldwide market to consider, a tariff for their phones coming into the country likely would just increase the sticker price rather than be actual encouragement to build the phones here.
The only really effective move in that case would be having customers stop buying iPhones until they're made in the US.
“Taxes 3rd word wages and zero tariifs are the leading cause of corporate flight.”
I’d put those as second and third. Taxes being the first.
Corporations pay not just income taxes, but also payroll taxes, perhaps the largest tax they pay. Toss in ObamaCare and that’s now probably the largest tax.
Add in property taxes. Those are ridiculous! Depending on the county, a corporation can easily pay over $1 million each year in property taxes.
Sure, third-world wages and zero tariffs are not doubt two leading incentives, but the tax situation is what initially drives them to seek leaving and they find those two incentives as cherries on the sundae.
Do you realize that you've just made a great case for Carrier to move every job out of that state?
10-4. If we can get the majority of people edumactated enough to understand this simple fact, the entire taxation thing would dramatically change.
One journalists “tax breaks” are another mans tax relief.
Different standards and deals for different people. Equal Protection out the window.
Reminds me of taxpayers subsidizing pro sports teams stadiums.
Ya, but he’s not President yet ...
That can be paid for with the elimination of Obama Phones.
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?
Yeah, except it’s not a different standard for different people. Any business investing in new manufacturing property in Indiana will receiving the same tax abatement. This represents a phased in application of real and personal property taxes on new property used in manufacturing and not a reduction of taxes on existing property.
I wish I was smart like you.
There is a place for “smart” people like you. It’s called the DUmp. You’ll find many like minds over there that prefer the carrier jobs in Mexico and Americans on welfare. Good day.
And that’s not counting the loss of jobs all tied to that Carrier plan. Suppliers, transporters, food service near the plant, lawyers, accountants, schools, etc.
I haven’t seen “true conservatives” this angry since Trump beat Cruz. They sound just like Democrats and clearly wish all the carrier jobs were in Mexico. LOL.
If the govt. doesn't get it none of us will ever know the difference.......
> $7 million..... over 10 years
Heck, Carrier probably pays that in salary and bennies for an Executive VP.
Taxes are paid by the consumer not the corporation.
One of CEO’s vacation homes is probably 7 million.
Figured about FIVE HUNDRED MILLION in salaries over 10 years.
Dont know if the state has a state tax, but 1 percent would pretty much break them even.
Like I said, HALF A BILLION in income over 10 years. How much revenue does that generate?
Sorry, but you not understanding basic math and economic principles does not make this an insult to voter’s intelligence.
Upstate New York is not Indiana.
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.