Soundwave said:
irstupid said:
Well as I mentioned above, I have nothing against tax breaks.
Well I don' like them called tax breaks. I just feel taxes on companies should be lower. It woudl keep companies in the U.S., and may bring some back. As I said, the employees income will get taxed. The employed americans spend their money. And also they are not on unimployment.
Take those 1,000 employees. How much do you think taxpayers would be paying to support them on unemployment? I woudl bet more than $700,000. They could hardly survive on 700 a year. Then think of local businesses, such a restuarants. People with a job are more likely to go out and eat than those looking and worrying about their finances. So 1,000 people losing a job may mean a restuarant or two also goes under. But lets ignore all those situations and just look at the flat income tax. Those 1,000 employees lets say make a modest $35,000 a year. At 35,000 a year with Indiana's tax rate of 3.3 That equates to each of those employees paying 1,155 in taxes. So $455 more dollars paid in that the tax break.
No matter how you try and spin it, I can't see how this is not financially a win all around. If anything the company is the one losing out still, cause they probably could save more money using cheap labor in mexico and cheaper taxes, ect. Obviously a big start up cost moving, but in time it would be better from profits still.
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Is it a financial win for the 1000+ people who are still losing their jobs?
This is a net job loss, I think people need to understand that, you're still losing jobs here. This is like thinking you're winning a basketball game because you only got outscored by 15 points that last quarter instead of 25 the quarter before.
This is a company that the US gov't also had considerable leverage over as I've mentioned, companies that don't have $5 billion in defence contracts with the US gov't (which like 99% of them) can just tell Trump to go blow himself.
$5 billion in defence contracts should at least get you 2000 jobs saved, that's a drop in the bucket, if you can't even get that many that's a problem because it shows he's likely impotent against companies that aren't really tied heavily to US gov't spending. Carrier's parent company is heavily tied to the gov't and this is the best they could do? To me it's a shitty deal, it should've been all 2000 stay or no dice, you're making billions off taxpayer funded government contracts.
If this is how he plans to negotiate, it's not going to stop a net job loss. Carrier made out very nicely here. Got to move 1000+ jobs to Mexico, got a nice tax break (no tarrifs), and a nice PR photo op for them.
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So your argument is he failed because he didnt' save all 2100 jobs?
Your basketball anology doesn't work. Without this deal all 2100 jobs are lost. I'll take 50% of jobs saved anyday. Yes it sucks for the other 1100 people, but 1000 people happy is better than 0.
And again, I'm saying it is a good deal financially for even the government. They are giving this company 700k, and yet will be getting in taxes back from employees working more than that. That is called a profit. The government spends 700k and gets back (35,000 x 1,000 x .033) = 1,155,000. So a profit of 455,000 for the government is just income tax alone. When I say gov, I mean Indiana only, cause they are footing this and I used their tax rate only. The Federal gov also gets taxes on each of those 35,000 salaries. (also fyi, that 35,000 is a very conservative # for avg salary, so their profit should be higher)
So tell me why the gov't would be annoyed if other companies did this? Clearly joe Blow can't just go to govt and threaten them with moving. It woudl have to be companies that have concrete plans and statements showing the benefit of moving and hwat not that could as you say "blackmail" the govt into keeping them here. If all it takes to keep companies from leaving is lower taxes, then do it. It pays back in just employee income tax alone. This is not trickle down economics. This is just keeping americans employed so they can pay the gov't taxes.
Raises taxes on Corps is teh stupidest thing imo. Let's look at the worst case scenerio of raising taxes. The company moves. What happens when that happens. 1. You lose all the tax revenue from taht company. 2. You lose all the income tax from their employed people. Take any sim video game you play. When setting tax rates, you obviously always try to get them as high as you can withotu losing people. When you start losing people, what do you do? You lower taxes to bring them back. It's simple. 8 yr old kids playing games understand this.