Trump Said He’d Punish Outsourcing Companies. Instead, He’s Bribing Them With Tax Breaks
Call it a payday loan on a campaign promise.
It appears President-elect Donald Trump will keep his campaign promise to stop AC Carrier from moving over 1,000 jobs from Indianapolis to Mexico, but not without selling out his promise to actually penalize outsourcing companies.
Trump’s negotiations with United Technologies, Carrier’s parent company, are two-sided, The New York Times reports. Boardroom negotiations tend to be.
While Carrier announced intentions to keep 1,000 workers employed at the Indiana plant, The Times quotes sources who say Trump is offering the corporate giant tax incentives and even favorable tax code changes in return. United Technologies already nets about $5 billion per year in government contracts.
“It’s unfair to ask the same workers who have been laid off to pay tax dollars that will go to the company that fired them,” Donnelly told The Times.
In a new twist of economic acrobatics, Trump’s deal may lead to an equally perverse scenario: Even more taxpayer money being diverted to any company that merely threatens to move U.S. jobs overseas.
Trump’s agent in the deal is Vice President-elect and current Indiana Governor Mike Pence, who is brokering state tax perks for the company, according to Mother Jones.
Looking for a tax break? Threaten to move 2,000 jobs and wait for a boardroom visit from President Trump.
The President-elect won’t even have to worry about his promise to actually penalize Carrier with a 35-percent tariff should it move forward with its plan to move its Indianapolis AC factory. The company will get a pass on threats that government contracts be withheld from companies that outsource manufacturing jobs, a plan first posited by Bernie Sanders.
Trump gets winning headlines. Carrier gets a holiday care package. U.S. taxpayers, meanwhile, are on the hook to subsidize a company that threatened to move their jobs to Mexico.