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Donald Trump is showing us how he will deal with incentives to encourage corporations to keep jobs in America. I'm not so sure this approach is a good idea, and I agree with Bernie Sanders's perspective on this. What do you think?
Last edited by Just Fred (12/01/2016 7:55 am)
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I pretty much agree with Bernie's assessment. With all the people Trump is surrounding himself with in his cabinet, it pretty much signals a very pro-business executive/screw labor environment.
But, as I have previously stated, the election is over, Trump won, and it's time to put up rather that spout off. We will known within a year as to whether Trump has any real leadership ability and whether he will really pay attention to the needs of the people he pandered to and voted for him, or if he will continue to favor the millionaire's club like those he has selected for his cabinet.
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Well, it was at least a PR coup for Trump as much of America about it initially, but with further inspection even FOX news saw the holes in the "deal" as noted below. It will save some jobs but not keep Carrier from still shipping others to Mexico. Meanwhile they have landed some still to be announced concessions that likely will cost the taxpayers in the long run.
The government actually has a "big stick" here in the amount of money Carrier's parent company (United Defense) receives from the government. Did we use the "big stick". I think NOT !
Many times deals like this are all about PR and not the actual underpinnings of the deal itself. Of course how many of the public actually takes the time to read past the headlines or do a fact check on what is said. Not many.
Here is the FOX article that gets a little more into the details of the "deal".
Hundreds could still lose jobs at Carrier's Indianapolis plant, despite Trump deal
Last edited by tennyson (12/01/2016 8:23 am)
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Sanders does make some good points in his article but I think he just scratches the surface of the problem of what Trump is doing with Carrier and how it's going to bite a of people in the rear as his time in office begins.
First, Sanders made a factual error early in the column. Donald Trump did nothing to keep jobs in Indiana. In fact, Mike Pence did so by extending tax incentives to Carrier.
States have provided incentives like those given to Carrier to bring business to their state, or to keep businesses in their state. And there is an argument to make that in a free and competitive marketplace, that it's a good thing for states to fight for their citizens by putting an attractive tax package to grow jobs.
Here's the thing though, and this is where Sanders is dead on....
There are millions of businesses in the country. Every one of them wants a competitive advantage. What sort of goodies are they going to bring the White House in order to get favorable tax treatment under the guise of "keeping jobs in America"?
And what about those companies that don't bow to the President?
One of the tenants of conservatism is that government shouldn't be in the business of picking winners and losers. Carrier (and their employees) is clearly a winner here. But let's be clear that Trump by focusing the government's efforts to save certain companies is a very liberal tactic and as we go deeper into Trumponomics, there will be plenty of losers.
So just be prepared for that.
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Just wondering would it be better for the jobs to leave the country?
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Just wondering would it be better for the jobs to leave the country?
It's not about that, Common. It's about the strategy to keep jobs here. Offering Carrier 700 grand of Indiana's taxpayer money to keep half the workforce here amounts to corporate welfare. It opens the door to other corporations doing the same thing.
Suppose you and I owned a widget manufacturing company. All we need to do is threaten to move our operation overseas. We cash in via holding the taxpayers of PA hostage. I don't think that's a good idea. Our company was successful, but you and I got greedy and decided to take advantage of a subsidy we didn't need just like Carrier did.
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Common Sense wrote:
Just wondering would it be better for the jobs to leave the country?
You built yourself a nice strawman there, Common.
You could keep every job in the country by putting a 200% tariff on every import.
Of course, every other country would put a 200% tariff on all of our exports, so all of the things American workers could produce wouldn't have anyplace to go.
So where would the economic growth come from.
We could probably keep a lot of jobs in the U.S. by slashing corporate tax rates. But that doesn't take into account jobs that would be lost to automation, nor by lowering rates in there any promise given by companies that they would keep their jobs on shore or grow their companies with American workers.
And of course, with less revenue coming into the government, you have to be willing to give up something. Is it infrastructure? The social safety net? Health services.
So yes, of course it's good that the Carrier jobs are staying in the U.S.
The question is how does Trump handle this in the long run. He cannot just show up at each business individually handing out tax incentives.
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And somebody is going to have to share the burden of that $700 grand budgetary whole created by that loophole bribe gifted to Carrier, and who knows what other tax relief 'benefits' granted to corporations.
That burden will be inevitably end up being the shared responsibility of ordinary taxpayers.
Unless you're in the executive suite of corporate America, I'm afraid this is a losing proposition for average Americans who will see their taxes rise to close this government created corporate tax loophole bribe.
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Rongone wrote:
And somebody is going to have to share the burden of that $700 grand budgetary whole created by that loophole bribe gifted to Carrier, and who knows what other tax relief 'benefits' granted to corporations.
That burden will be inevitably end up being the shared responsibility of ordinary taxpayers.
Unless you're in the executive suite of corporate America, I'm afraid this is a losing proposition for average Americans who will see their taxes rise to close this government created corporate tax loophole bribe.
BINGO !
The giveaways and the corporate tax cuts eventually will be borne by the average man and woman OR we could just let the deficit go to astronomical heights.
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So much for the "Trickle Down" economics Bullshit Highway we've been traveling down for the last 35 years.