More five-star sizzle on a one-star steak (boldface mine):
Carrier, the company that changed its plans to shutter a plant in Indianapolis and shift production to Mexico after talks with President-elect Donald Trump, confirmed Wednesday that it would receive financial assistance from the state of Indiana as part of the deal to keep the plant open.
“Today’s announcement is possible because the incoming Trump-Pence administration has emphasized to us its commitment to support the business community and create an improved, more competitive U.S. business climate,” a statement from the company read. “The incentives offered by the state were an important consideration.”
…The deal does not affect another United Technologies facility in Huntington, Ind., which also is scheduled to close as production shifts to Mexico. That plant has about 700 employees.
This is nothing more than the ongoing race-to-the-bottom tax cuts for jobs that Kenneth Thomas keeps writing about (and correctly assailing). Basically, Trump has told U.S. companies, “If you want a tax break, threaten to move jobs offshore.” If he gets rolled by Carrier, what chance does he stand against ISIS? The BEST deals. AMAZING deals.
Senator Bernie Sanders notes the hypocrisy (boldface mine):
Just a short few months ago, Trump was pledging to force United Technologies to “pay a damn tax.” He was insisting on very steep tariffs for companies like Carrier that left the United States and wanted to sell their foreign-made products back in the United States. Instead of a damn tax, the company will be rewarded with a damn tax cut. Wow! How’s that for standing up to corporate greed? How’s that for punishing corporations that shut down in the United States and move abroad?
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 re-evaluating 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.
And a possible solution:
If United Technologies or any other company wants to keep outsourcing decent-paying American jobs, those companies must pay an outsourcing tax equal to the amount of money it expects to save by moving factories to Mexico or other low-wage countries. They should not receive federal contracts or other forms of corporate welfare. They must pay back all of the tax breaks and other corporate welfare they have received from the federal government. And they must not be allowed to reward their executives with stock options, bonuses or golden parachutes for outsourcing jobs to low-wage countries. I will soon be introducing the Outsourcing Prevention Act, which will address exactly that.
So, how’s the steak?