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To: Mariner

It isn’t “crony capitalism”. Well depends on her specific definition of the term and context. It is though about government regulation, which can be said to be more ‘nationalistic’; some may call it a socialist approach. Anyhow, it is definitely not a “free market” approach.

Am not across the specifics of the deal. Lowering company (enterprise) tax to incentivize has been used before, elsewhere.

However, lowering taxes alone for an enterprise (company) actually means the company increases its profit margin, and is under no obligation to create jobs or retain jobs.

Unless keeping 1,000 jobs (FTEs) is specified in the deal. Even then the company can still reduce salaries and benefits to maintain or increase its labour costs, hence increase profit margin. Other factors at play too.


32 posted on 12/02/2016 7:39:59 PM PST by odds
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To: odds

Sorry typo: “increase” = decrease its labour costs.


39 posted on 12/02/2016 7:45:15 PM PST by odds
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