On the day Trump formally handed the U.S. government over to Wall Street Executives (and not the first time this has happened by any means).

pentagon

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.

Barack Obama’s White House praised the Carrier deal.

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.

Still, do we really want 800 more deals like Carrier?

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.

5 thoughts on “On the day Trump formally handed the U.S. government over to Wall Street Executives (and not the first time this has happened by any means).

  1. It’s amazing to me how easily states and cities hide the true dollar amount of their “economic development” activities. Taxpayers really have no idea how much corporate welfare they are supporting. Economic development has become an arms race where they just throw money at companies because everyone else is doing it… and us taxpayers are the losers.

  2. This is Trump getting jobs to stay in the US? Who suffers? All the tax payers. No wonder Indiana is falling apart. There isn’t money to get anything fixed.

    If this is the best that Trump has to offer to ‘make America great again’, we’re all in trouble. It’s highly unlikely that the proposition given to Carrier can be spread to other states. Mike Pence is still the governor of Indiana and he can sign tax freebies like this one.

  3. New York Times headline : Trump Cheered for Carrier Deal Even as Other Jobs Are Trimmed

    “…But since the pact was disclosed on Tuesday, critics have pounced on Carrier’s receipt of $7 million in incentives from the state of Indiana — just the kind of corporate giveaways Mr. Trump knocked as he slammed Carrier on the campaign trail last spring.

    Others have pointed out that cutting individual deals with different companies is a costly and ineffective way to stem the powerful forces that impel business to move factories and jobs in a highly competitive global and national economy….”
    …..
    Oh well. Indiana doesn’t need $7 million. What could the state possibly do with 7 million dollars? Can’t think of anything. These decisions only saved half of the jobs at Carrier.

    Is Trump planning to give tax money bribes to every corporation that now wants to move to Mexico? I can see a long line of corporate executives drooling at the prospect.

    Why is Trump being cheered for such a horrible maneuver?

  4. Eugene Robinson…”Trump will helm a government of, by and for corporate America”… Washington Post

    ‘…So imagine you’re a CEO who wants to send, say, 5,000 manufacturing jobs overseas. Having learned from the Carrier example, you might begin by announcing that unfortunately you are forced to eliminate 10,000 jobs because of the crushing tax burden. Even if you really want to move the jobs to Vietnam or Kenya, just say you’re looking at possible sites for a new plant in Mexico. That’s sure to get Trump’s attention.
    When Trump calls offering tax breaks or enterprise zone incentives or free rounds of golf in Scotland, whatever goodies he tosses in, hold out for a while — then reluctantly, in the spirit of patriotism and Making America Great Again, announce you’ve agreed to cancel half of the 10,000 job cuts. You’d still be meeting your original goal of eliminating 5,000 jobs, only now you’d also have a lower corporate tax bill and a tee time at Turnberry….’

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