December 1, 2016

Behind the Carrier deal

Politico - The deal that President-elect Donald Trump and Vice President-elect Mike Pence brokered to keep Carrier jobs in Indiana likely hinges on its parent company's fear about losing business with the federal government, said an official who will play a critical role in approving the agreement.

Trump and Pence will visit Indiana on Thursday to announce they’ve delivered on a campaign promise to keep about 1,000 factory jobs from moving to Monterrey, Mexico. The agreement reportedly includes $700,000 in state tax breaks offered by the Indiana Economic Development Corporation, a quasi-public entity that doesn't require legislative approval for its deals.

But John Mutz, a former Indiana lieutenant governor who sits on the agency’s 12-member board, told POLITICO that Carrier turned down a previous offer from IEDC before the election. He said he thinks the choice is driven by concerns from Carrier’s parent company, United Technologies, that it could lose a portion of its roughly $6.7 billion in federal contracts.

“This deal is no different than other deals that we put together at the IEDC to retain jobs, but the fact is that the difference is that United Technologies depends on the federal government for lots of business,” Mutz said

1 comment:

BeamMeUp said...

The whole thing is disgusting. What happened with the 35% tax he was going to levy on their products made in Mexico if they outsourced production?. Nothing. They're still going to outsource jobs and get corporate welfare, to boot. As of 2012, it was a $12.5 billion company (source Wikipedia)