“Companies are not going to leave the United States without consequences,” said Trump last Thursday. He successfully saved jobs at the Carrier plant last Thursday. He and Pence went to a Carrier plant in Indiana because they were planning to send over two thousand jobs to Mexico saving Carrier $65 million.
Well let’s see what they did…..
Indiana offered Carrier a $7 million package over 10 years for them investing $16 million in their plant and keeping 1000 jobs in the US. Of the reported 1000+ jobs saved, 730 were actually saved. Three hundred R&D jobs were not going to be moved. They are still moving 600 jobs now and (when the plant in Huntington Indiana closes) another 700 are moving to Mexico.
On the campaign Trump mocked government payoffs by grants, tax incentives…He said you needed to use a stick not carrot. “What you do is you tell them, ‘You move to Mexico, you`re going to pay a 35 percent tax bringing these products that you make in Mexico back into the country.’” He assured voters that it would work “easily”.
They are setting up a dangerous pattern to pay off companies to remain in the US. Hell, if companies weren’t planning on it maybe they should. “Pay us or we will leave.”
I wonder what additional incentives were offered? The US military makes up of about 10% of United Technologies’ (Carrier’s parent company and negotiator) $56 billion in annual sales.
I’m happy that 730 jobs were saved but at what cost? Still losing 1300. Cost to Indiana taxpayers $7 million. The corporate tax rate supposedly will also be reduced. What under-the table deals might have be made that we don’t even know about? Trump and Pence were really looking for a win.
BTW The $16 million Carrier is spending on the plant to “update it”…..will make it more automated. Losing jobs in the future.