The Art of the Deal
NYS gives all kinds of benefits to businesses who rob the system by not living up to their obligations. Yes...of course they know the benefactors.
Typical and I’ve seen it done in my state, too. Both the company and the state need to find a more permanent solution because this is only a Band-Aid.
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?
We’ve got all those Gop governors and legislatures...we can fix this country
So the taxpayers still getting effed Donald if this is your deal?
That's $35,000,000 in payroll.
How much of this is paid in taxes?
Assume a 15% bracket that's $5,250,000 in Federal Taxes
Assume a 6% local sales tax...that's 2,100,000 in local taxes.
That leaves around $25,900,000 of income to be spent at local businesses in that area.
Sounds like a decent deal to me.
$7 million..... over 10 years
What a deal compared to putting 1000 workers and their families and employees of all the businesses they support on unemployment or food stamps and subsidies to supplement low paying part time work
How much taxable revenue will spin off from those jobs, healthy communities of employed workers, and all the other businesses touched by the presence and spendin gpower of those employees
This is fairly typical. Large companies can constantly threaten to leave (even to another state) and try to get tax breaks - sort of like NFL teams that threaten to leave unless the public builds a new stadium.
On paper, the city/state still benefit, when the payroll taxes and future property taxes are all penciled out. However, often the company does not fulfill its obligations with job creation or retention, and the city/state are left with the messy business of ‘calling the note’, so to speak...or just losing out if they don’t have the stomach for that.
I have actually seen a magazine geared towards which states have the most breaks.
I think its overall a bad idea to have states and cities compete with each other with tax breaks (and by default treating the rest of us unequally under the tax law). But I think it makes sense at a national level, to keep companies from leaving the entire country. Now the companies would still want an incentive to stay, and one of the only things that can be done at the federal level is a ‘stick’ approach with tariffs.
That’s chump change for a corp that size. A fig leave to for them to hide behind, IMO.
Guys, this hasn’t worked for Upstate NY.
Taxes are the leading cause of corporate flight. Fact is, the founding fathers knew that income taxes are ruinous to a country.
Do the math just on the jobs alone. 7 million over ten years equals a cost of $700,000 per year.
1000 Jobs at $50,000 per year equals 5 million PER YEAR into the local economy. That pumps at least $50,000,000 into the US economy over ten years.
A Cost of 7 Million for a gain of 50 Million is certainly a good investment.
So what is that?, the cost of One Obama vacation
I believe that during the campaign he talked about lowering the corporate tax rate. This is a good start. :-)
How much in taxes does indiana gain by having those 1000 people employed and not drawing unemployment benefits ?
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
It’s a wonderful thing.
So he went from a negotiating position of placing a tariff on imported AC units to retain 2,000 jobs in Indiana, to retaining 1,000 jobs and providing Carrier with $7,000,000. Looks like the management at Carrier knows the Art of the Deal.