cost: 7 mil
investment: 16 mil
employees income taxes: unknown
contractors/subcontractors jobs saved: unknown
unemployment payouts saved: substantial
it’s only bad economics when you don’t quantify the benefits of those 1100 people working, and the effect upon society of the addition of their salaries to the economy versus the detriment of the unemployment from society.
Your mind is a garden, your thoughts are the seeds.
You can grow flowers, food or you can grow weeds!
Haven’t you planted a lifetime of weed seeds this past year?
What is the problem with the State of IN allowing Carrier to keep their more of their own profits, instead of taxing it away from them for the next 10 years, in order to keep the jobs here?
Face it. This is just more Never Trumper butthurt in action.
Author demonstrated he is a total moron with ZERO understanding of business.
Letting Carrier KEEP THEIR OWN MONEY, rather then have the State of IN tax it away from them is a VERY Conservative position.
Face it, this is just more of the usual #Never Trumper whining butt hurt.
I would say to this gentlemen that “market driven economics” are “good” until they get out of “balance”............................kinda sort of like my first wife! The marriage started off good and then got out of balance.
I just object to “market driven economics” being solely determinative as too often “MDE” means the big guys get richer and the little guy gets fired and sent to “retraining”
aka “welfare” while his family agonizes.
I would LOVE to see the day when publications like The Week and others where Pethokoukis and his ilk work (like the WSJ, Nat. Review) decide to fire these numbskull writers and pundits and give all the paid assignments for writing & punditry to third worlders from South America and Asia.
They sure as hell aren’t as valuable to the country as a steelworker or a CNC operator. In fact, they are more like leeches on the economy.
The author is right on a lot of these points, but I suspect that Carrier’s decision involved a lot more than just a state tax incentive. Time will tell, but I truly believe that the biggest impact of Trump’s election is a general recognition by these companies that a real adult is going to be in charge soon.
what if also part of the deal was to lift restrictions / remove regulations and have a dept of commerce that might help them expand contracts to overseas? what say you then?
So... how’s that 15$ min wage working out?
Ha ha ha. Trying to present this as a loss.
The Week is suffering massive butt hurt.
Apparently the “tax break” is worth in the neighborhood of $7K per job. $7 million, 1,000 jobs. (This is just preliminary yakking, I have not examined the deal in depth)
If anyone thinks that a group of $50K/year employees are not going to spend $10K/year on average locally, they are delusional. That’s *after* taxes on the employees.
Solyndra cost $550 MM and produced at its peak 1250 jobs of which not one currently exists. That would be $440K per no-longer-existing job.
Somebody needs to STFU. Or as BJ Clinton once said, “don’t let perfect be the enemy of the good”.
Let’s also ignore, while we’re at it, the effect of getting this movement going. Throw 200-300 other Fortune 1000 companies into the mix and you’ll have 300-400K jobs brought back to the US.
Yeah, I know, that would suck.
James Pethokoukis I bet a box of donuts this fruitcake thought Solyndra was wonderful.
Corporate taxes are pass-thru items.
So, according to this jackass, a State giving tax incentives to keep a business is the same thing as the United States Government giving away BILLIONS of dollars of actual cash UPFRONT to failing companies?!?
Wow, I would have thought that such a stretch would be hard, even for a Leftist Liberal...apparently, I was wrong!
“Dell closed a North Carolina plant in 2009 just five years after receiving millions in state tax incentives to open it. Production then moved to Mexico.”
So, Dell was not taxed as highly and employed people at this location for 5 years....and that is a BAD thing? I think Trump would continue incentives to avoid them from leaving at the 5 year mark.
Not sure of this author’s ability to think things through...
This guy knows nothing about the details of the deal, but is somehow able to slam it anyway for being so bad for the country. Amazing how that works.
If you are a U.S. company you produce from the U.S.-period.
I should have studied harder in Econ ...
The winner was already picked the minute the company accepted a government contract. It’s only natural to expect that your company has to adopt pro-American policy if you want to do business with America.
If you do business with Walmart but your CEO keeps going on TV talking about how Walmart sucks and should be closed down, do you expect to keep them as a customer?
Auto-bailouts and “clean energy” subsidies are PAYOUTS from the government to businesses. A tax break is not “crony capitalism.” It’s letting them keep the money they legitimately earned. Night and day difference from the government sending money to companies who may not have earned anything.