The deal that Donald Trump negotiated with United Technologies to keep Carrier jobs in Indiana is getting even worse. Trump and Pence gave United Technologies $7 million of taxpayer money in exchange for only keeping 800 jobs in the US.
The deal that Donald Trump negotiated with United Technologies to keep Carrier jobs in Indiana is getting even worse. Trump and Pence gave United Technologies $7 million of taxpayer money in exchange for only keeping 800 jobs in the US.
The Wall Street Journal (subscription required) reported that the deal only covers 800 Carrier jobs in the Indianapolis furnace plant and an additional 300 research and development jobs that were not going to Mexico. Carrier parent company United Technologies still intends to move 1,300 jobs to Mexico.
In return for keeping less in the US than they are moving to Mexico, United Technologies is getting a tax cut and incentive package worth $7 million over the next ten years.
Eric Brander of CNN provided more details:
More details on the Carrier deal with Indiana, from a source familiar: It’s $700,000/year for 10 years total… (1/2)
— Eric Bradner (@ericbradner) December 1, 2016
— $500/K per year in refunds on state income taxes.
— $200K/year for job training & refunds of previously clawed-back incentives. (2/2) https://t.co/WffX9hBYlK
— Eric Bradner (@ericbradner) December 1, 2016
Using taxpayer dollars to bribe companies to stay in the US is always a bad deal, but the deal gets even worse when it keeps less than half of the at risk jobs in the country. Trump and Pence just threw away seven million dollars that Indiana taxpayers are going to have to pay for so that Carrier can keep a fraction of the jobs they were going to send to Mexico in the country.
Newspoodle 