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Creates a moral hazard that incents every company to threaten to leave in hopes of a handout.
When Sarah Palin is on the right side, you know something is horribly wrong.
$7 million over 10 years is 700k per year. 1000 jobs saved so $700 per job saved every year. I'd say worth it to keep 1000 people employed?
If the average employee there makes $35k, they will pay $4.35M in federal income tax alone, according to IRS tax tables. If they all get laid off, they pay $0. Plus, keeping the jobs here keeps the money in the US economy, reduces unemployment claims, matches a revenue source (tax) against Medicare claims, puts more money in citizens picked so that they can buy gas (which pays the federal and state highway fund)....
So much for free markets, eh?
It saddens me when people's blind hatred for trump prevents them from acknowledging basic economics / math principles. I'm not a fan of trump either but the Carrier thing was a win and something Obama mocked and couldn't get done. $700 per job is great, my state gives tens of millions of dollars for less jobs in incentives.
It obviously makes sense economically, I don't think anyone is disputing that. What's alarming is the precedent it's setting, as M1 notes. It's disrupting the free market by picking winners and losers.
@OP the republicans don't really believe in small government
And this guy is the master of the deal?! And represents the Republican Party which believes in small government?! Poor Indiana residents .... you are paying Carrier?
I don't think that was the right thing to do at all. First of all, only one plant is staying, the other one is still leaving for Mexico. Nothing is preventing carrier from laying off all those people whose jobs were "saved" and still getting a tax break. Plus it sets a terrible precedent where companies can now threaten to leave unless they get unfair tax breaks
What about the 3 classrooms that will be cut as a result? It's a hypothetical, but that revenue comes from somewhere. I'd rather train a scientist than employ 800 assembly workers. Or rather fund adult education and get them a skill upgrade.
No EY1 president Obama has just created continuous job growth over his time, not just 1000 but millions. No need to diminish our current president when supporting the president elect.
@P1 if every employee who's job was saved makes $35k then it's unlikely that they would pay anything in federal taxes... especially if they are married or have children or have a mortgage.
PWC1 Does that work across if the handout is given to every company? Or only the ones where it is politically expedient to do so?
I'm certainly not for the crony capitalist approach here, but it does demonstrate the impact that changes to corporate taxes can have on employment, tax revenues, etc. and, frankly it's no more the government picking winners and losers than it giving huge grants or subsidized loans to energy companies (A123, Solyndra), faith-based organizations (*.BushGiveaways), or union-only contractors
Also, I suspect they were going to keep that plant anyway.
https://sites.google.com/view/trumpunfit EC can still kabosh this whole thing. These few weeks have been horrible and terrifying to watch. Imagine the next few years. Advocate.