United Technologies, whose biggest client is DT’s Pentagon owns Carrier, the air conditioning company. Do we need 800 more deals like this?
On the day DT formally (and not for the first time) handed the government of the United States to Wall Street executives, he also announced that United Technologies would not be moving their air conditioning factory from Indiana to Mexico.
The White House first applauded Donald Trump’s deal to keep around 1,000 manufacturing jobs in Indiana, then challenged him to do it 800 more times to match President Barack Obama’s “high standard.”
Trump’s team announced he and Vice President-elect Mike Pence, Indiana’s governor, will appear in Indiana Thursday to formally announce Carrier will keep those jobs at an air conditioning plant rather than move them to Mexico. His aides are eager to make sure the president-elect and Pence get credit for cutting the deal.
At the White House on Wednesday, Press Secretary Josh Earnest said “this is good news and, obviously, we’d welcome that good news.”
Then the trolling began.
“I know that the president-elect has indicated that he deserves credit … for that announcement, and I guess what I would observe is that if he is successful in doing that 804 more times, then he will meet the record of manufacturing jobs that were created in the United States while President Obama was in office,” Earnest said.
I get that Obama wants some props for bringing 800,000 jobs back into the economy since Bush and his Wall Street buddies tanked it in 2008.
It’s odd that this wasn’t really mentioned by Hillary during the election.
What neither Trump nor the company has announced officially, however, is just what the Indiana government has offered as an inducement to stay. But you can assume, even with the pressure from the President-Elect, that Indiana paid up. Earlier on Wednesday, a source close to the company told Fortune that United Technologies would get $700,000 in state tax breaks for a number of years.
This is congruent from what we know about the sort of tax breaks Indiana and Indianapolis has already offered the firm. Back in 2011, the city gave the company a six-year property tax abatement, which allowed them to forgo paying $1.2 million in taxes, according to the Indianapolis Star. The company has also taken advantage of funds the state allocates for job retraining, and had reached a deal with Indiana to return several hundred thousand dollars for contributions it made to the company’s retraining programs as a part of the state’s Skills Enhancement Fund.
BTW, the Pentagon, now owned by DT, is United Technologies’ biggest client.
Today Crain’s is reporting that the country’s wealthiest folks are getting an additional $21 billion in tax breaks.
So, how are you doing?
They and their businesses are re-evaluating, or putting on hold, strategies for transferring money to heirs as the new administration could work with a cooperative Congress to reform or repeal federal estate and gift taxes among its early moves. That would be an about-face from President Barack Obama, who sought to place tighter restrictions on the way wealth could be passed from generation-to-generation.
“Eliminating the death tax will equate to an enormous gift,” said Peter Rup, who manages about $900 million for rich families at Artemis Wealth Advisors in New York. The IRS collected $21 billion from taxes on estates and gifts in its fiscal year 2016, according to data from the U.S. Treasury Department.
Trump is gearing up to embark on the biggest U.S. tax overhaul in three decades. His proposals include cutting income and corporate taxes and eliminating the so-called death tax, which is paid primarily by the richest 10 percent of earners, according to the Tax Policy Center. Advisers to wealthy families and their offices also anticipate that the new administration’s approach to estate and gift taxes could negate rules they were bracing for, which sought to limit tax breaks on transferring wealth.