Instead of Taxing Carrier for Outsourcing as Promised, Trump Is Handing Them a Big Tax Cut
Donald Trump hasn’t even taken office yet, and he’s already blatantly turning his back on the key promises he made to the right wing mob, over and over at his rallies all year.
Today we’re learning that his so-called “deal” with United Technologies to keep Carrier air conditioner factory workers in the United States is basically a government handout to a company that’s already massively profitable.
Trump promised all year he would place a 35% levy on their air conditioners if Carrier moved their business to Mexico, but Trump’s plan completely drops this pledge and instead hands Carrier a big package of tax benefits and incentives that will be paid for by… guess who?
In essence, United Technologies took Trump hostage and won. And that should send a shock wave of fear through all workers across the country.
Trump has endangered the jobs of workers who were previously safe in the United States. Why? Because he has signaled to every corporation in America that they can threaten to offshore jobs in exchange for business-friendly tax benefits and incentives. Even corporations that weren’t thinking of offshoring jobs will most probably be reevaluating their stance this morning. And who would pay for the high cost for tax cuts that go to the richest businessmen in America? The working class of America.
Let’s be clear. United Technologies is not going broke. Last year, it made a profit of $7.6 billion and received more than $6 billion in defense contracts. It has also received more than $50 million from the Export-Import Bank and very generous tax breaks. In 2014, United Technologies gave its former chief executive Louis Chenevert a golden parachute worth more than $172 million. Last year, the company’s five highest-paid executives made more than $50 million. The firm also spent $12 billion to inflate its stock price instead of using that money to invest in new plants and workers.
Does that sound like a company that deserves more corporate welfare from our government? Trump’s Band-Aid solution is only making the problem of wealth inequality in America even worse.
Carrier deal in a nutshell:
- Jobs saved from going to Mexico: 800
- Jobs still going to Mexico: 1,300
- Cost to Indiana taxpayers: $7M