Bernie Sanders: Carrier just showed corporations how to beat Donald Trump

[SirLinksALot]

SOURCE: WASHINGTON POST

URL: https://www.washingtonpost.com/posteverything/wp/2016/12/01/bernie-sanders-carrier-just-showed-corporations-how-to-beat-donald-trump/?utm_term=.4757a3c6f852

by Bernie Sanders


Today, about 1,000 Carrier workers and their families should be rejoicing. But the rest of our nation’s workers should be very nervous.

President-elect Donald Trump will reportedly announce a deal with United Technologies, the corporation that owns Carrier, that keeps less than 1,000 of the 2100 jobs in America that were previously scheduled to be transferred to Mexico. Let’s be clear: It is not good enough to save some of these jobs. Trump made a promise that he would save all of these jobs, and we cannot rest until an ironclad contract is signed to ensure that all of these workers are able to continue working in Indiana without having their pay or benefits slashed.

In exchange for allowing United Technologies to continue to offshore more than 1,000 jobs, Trump will reportedly give the company tax and regulatory favors that the corporation has sought. 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. 

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[endicom]

SOURCE: WASHINGTON POST

The working class of America. 

Which has not included Bernie Sanders.

[LMAO]

Sanders is a economic illiterate.

He seems to be of the mindset that you can force companies to stay in the US. That the role of government is to "punish" companies that make economic decisions.

Of course, this was the same guy who heaped praise on Vermont's single payer healthcare system. The same one that nearly bankrupted them

[SirLinksALot]

Of course, this was the same guy who heaped praise on Vermont's single payer healthcare system. The same one that nearly bankrupted them

So, how did Vermont avoid bankruptcy?

[LMAO]

So, how did Vermont avoid bankruptcy?

Actually it would've been more accurate for me to state it threatened to bankrupt them.

[Maj. Bill Martin]

One of my favorite quotes on job-creation came from a Democrat Senator, and one from Massachusetts at that.  Senator Paul Tsongas, at the 1992 DNC:

“You cannot be pro-jobs and anti-business at the same time. You cannot love employment and hate employers"

http://izquotes.com/quote/274128

[Maj. Bill Martin]

So, how did Vermont avoid bankruptcy?

They cancelled the single payer system.

[geronl]

Why is Trump making deals with individual companies anyway, that is not the job of a President. it sounds like something from Hugo or Fidel

[Night Hides Not]

Why is Trump making deals with individual companies anyway, that is not the job of a President. it sounds like something from Hugo or Fidel

I asked this question yesterday: why was the GM bailout bad, and the Carrier bailout good? I have a feeling similar dichotomies will arise in the coming months.

[SirLinksALot]

I asked this question yesterday: why was the GM bailout bad, and the Carrier bailout good?

Did Carrier receive any Federal money? ( Trump is not in office yet ). And unlike GM, Carrier is not in financial trouble such that they need a bailout.

I think it is a combination of the following:

1) Discussion with parent company United Technologies and a gentle reminder that they have billions of dollars in contract with the Federal Government present and future ( for which they have competitors ).

2) Promises of tax breaks and lesser regulations.

3) Threats of huge tariffs when they ship finished products across the border.

[Suppressed]

Did Carrier receive any Federal money? ( Trump is not in office yet ). And unlike GM, Carrier is not in financial trouble such that they need a bailout.

I think it is a combination of the following:

1) Discussion with parent company United Technologies and a gentle reminder that they have billions of dollars in contract with the Federal Government present and future ( for which they have competitors ).

2) Promises of tax breaks and lesser regulations.

3) Threats of huge tariffs when they ship finished products across the border.

Indiana taxpayers are giving a $7 million bribe to Carrier to keep less than half the workers in-state.  There is a promise by Carrier to invest $16 million of its money in its Indiana operations.

Or, rather, Trump and state officials are giving $7 million of taxpayers' money to Carrier.

http://www.cnbc.com/2016/12/01/indiana-reportedly-gave-utx-7-million-in-tax-breaks-to-keep-carrier-jobs-in-state.html

[Victoria33]

Why is Trump making deals with individual companies anyway, that is not the job of a President. it sounds like something from Hugo or Fidel

@geronl

He promised to give them tax breaks and give govn. contracts to the parent company, but he isn't president yet and can't deliver on the promise by himself when he is president.  Lyin' Trump.

[Night Hides Not]

Time to get over the fact that we haven't had a semblance of a market economy for decades, maybe we never did have it. Trump economics, i.e. "the art of the deal" style of crony capitalism will pick as many winners and losers as Democrat or Republican administrations.

[Frank Cannon]

I think it is a combination of the following:

You don't have to speculate. We know exactly what happened. Gov Pence played favorites and bribed a singular business in IA $7 mill to keep SOME of the jobs and then Donny did a victory lap.

This is what Donny and the company both say that happened.

[SirLinksALot]

You don't have to speculate. We know exactly what happened. Gov Pence played favorites and bribed a singular business in IA $7 mill to keep SOME of the jobs

Bribe as in what? GAVE THEM $7 Million out of the Indiana treasury? Or gave them a $7 Million tax break? Is there not a difference between these two?

The former says, hey, we'll give you money from tax revenue.

The other says, hey, we won't take more of your money.

[Chosen Daughter]

@geronl

He promised to give them tax breaks and give govn. contracts to the parent company, but he isn't president yet and can't deliver on the promise by himself when he is president.  Lyin' Trump.

That's what I said on Thanksgiving.  Of course I am happy people will have their jobs saved but how?  How did any deal making occur between a corporation and president elect?  Is it an individual deal (bribe) to prop Trump up or should we expect this as policy?  How much do we expect we have to dole out to large corporations to stay here?

[Night Hides Not]

That's what I said on Thanksgiving.  Of course I am happy people will have their jobs saved but how?  How did any deal making occur between a corporation and president elect?  Is it an individual deal (bribe) to prop Trump up or should we expect this as policy?  How much do we expect we have to dole out to large corporations to stay here?

Crony capitalists are boarding the Trump Train to the government teat.

Trump's trillion dollar infrastructure plan will create an economic bubble that I pray we can survive.

[SirLinksALot]

OK folks, one of the incentives was $7 million in tax breaks for the next 10 years.

Of the top of my head....

$700,000/year in tax relief is pretty cheap to keep the jobs here. If each worker pays $1000 in income taxes per year, it pays for itself, and that doesn’t figure in the costs in unemployment comp, welfare, and other transfer payments that would have occurred had the company left.

[Weird Tolkienish Figure]

Shockingly I agree with Col. Sanders. Businesses can now just threaten to move to get tax breaks.


Trump and his supporters aren't intelligent enough to get that though.

[SirLinksALot]

My point is this, no company needs to consider moving overseas if the TAX and REGULATION policies are low and reasonable respectively.

For instance, Letting Carrier KEEP THEIR OWN MONEY, rather then have the State of Indiana and the Federal government tax it away from them is a VERY Conservative position.

We should all applaud it, and we ought to encourage policies like these everywhere in this country.

For this situation, odds are that Carrier split the baby, choosing to keep one part in the US and retool the plant and send the rest (and likely growing) part to Mexico to make up for the extra costs of the US plant.

In the long run, the main thing that can be done to prevent companies from fleeing is to make it attractive to continue operating here in the USA, and other than using the power of tax incentives and reasonable regulations, I can't think of any other ( Tariffs are a tax on consumers and are not something I like ).

[SirLinksALot]

Indiana taxpayers are giving a $7 million bribe to Carrier to keep less than half the workers in-state.  There is a promise by Carrier to invest $16 million of its money in its Indiana operations.

Or, rather, Trump and state officials are giving $7 million of taxpayers' money to Carrier.

http://www.cnbc.com/2016/12/01/indiana-reportedly-gave-utx-7-million-in-tax-breaks-to-keep-carrier-jobs-in-state.html

That's $7 million in tax BREAKS (incentives) for 10 years. That's NOT giving them tax payer money.

There's a difference between giving them money and telling them --- hey, we won't confiscate more of what you make honestly.

Just looking at the deal on balance....

$700,000/year in tax relief is pretty cheap to keep the jobs here. If each worker pays $1000 in income taxes per year, it pays for itself, and that doesn’t figure in the costs in unemployment comp, welfare, and other transfer payments that would have occurred had the company left.

[InHeavenThereIsNoBeer]

My point is this, no company needs to consider moving overseas if the TAX and REGULATION policies are low and reasonable respectively.

For instance, Letting Carrier KEEP THEIR OWN MONEY, rather then have the State of Indiana and the Federal government tax it away from them is a VERY Conservative position.

We should all applaud it, and we ought to encourage policies like these everywhere in this country.

I'll applaud it when it is applied uniformly accross all companies (within a tax district).

Until then all I see is one company getting an unfair advantage against its competitors.

[geronl]

Bribe as in what? GAVE THEM $7 Million out of the Indiana treasury? Or gave them a $7 Million tax break? Is there not a difference between these two?

Not really, everyone else will be forced to make up the difference. That is what cronyism does. People like Trump pay no taxes and everyone else is forced to carry more of the burden.

The more "deals" that get made, the more of the burden small businesses and individuals are going to be forced to carry

[geronl]

There's a difference between giving them money and telling them --- hey, we won't confiscate more of what you make honestly.
.

Cronyism, why should Carrier get a better tax rate than other companies. Why should other companies pay for this deal, because they will. Hopefully every other company in the state announces they're leaving.

"honestly" is the word here, if you make crony deals with the politicians to get an unfair advantage how is that "honest" exactly.

[SirLinksALot]

Cronyism, why should Carrier get a better tax rate than other companies. Why should other companies pay for this deal, because they will. Hopefully every other company in the state announces they're leaving.

"honestly" is the word here, if you make crony deals with the politicians to get an unfair advantage how is that "honest" exactly.

What about this --- we lower the taxes for every corporation (not just Carrier) in Indiana (and every corporation in America ). We also eliminate unnecessary regulations for every corporation in Indiana AND the United States.

How is that crony capitalism?