December 10, 2016
By Steven Wishnia and Neal Tepel
Indianapolis IN – President-elect Donald Trump’s Nov. 29 deal with the Carrier Corporation to give it $7 million in tax breaks will preserve about 800 jobs at its air-conditioner plant here—but another 600 workers will still be laid off, and Carrier’s parent company, United Technologies, will still close another plant in Huntington.
“All of our jobs are leaving. Why isn’t he saving some of our jobs, if not all of them?” said Bill Davis, president of International Brotherhood of Electrical Workers Local 983, which represents the 700 Huntington workers. Carrier’s saving some jobs in exchange for tax breaks is “gaming the system,” Matthew Gardner of the Institute on Taxation and Economic Policy told In These Times. He believes it will encourage other corporations to extort tax breaks. “Companies competing with United Technologies that haven’t as brazenly threatened to move jobs offshore will have to pay higher tax rates than United Technologies,” he said Gardner. “Every tax break for a specific company ultimately has to be paid for by the rest of us.” United Technologies paid only 11% of its profits in federal taxes between 2008 and 2012, according to Citizens for Tax Justice, and it received billions of dollars in federal contracts and hundreds of millions in state and federal tax subsidies. Read more