Corporate Welfare

Team Trump Rewards Company for Outsourcing Jobs to Mexico

JM Ashby
Written by JM Ashby

We all know the despot-elect's words aren't worth spit, but just to drive the point home his people are taking credit for rewarding a corporation for outsourcing jobs.

You may have heard that Trump "struck a deal" to prevent Carrier from outsourcing jobs from Indiana to Mexico, but that's not even half the story. The full story is Carrier still intends to send jobs to Mexico and will receive a significant tax break for it.

The deal would cover 800 Carrier workers from the Indianapolis furnace plant and an additional 300 research and headquarters positions that weren’t slated to go to Mexico, according to another person briefed on the deal.

The company still plans to move 600 jobs from the Carrier plant to Mexico. It also will proceed with plans to close a second plant in Huntington, Ind., that makes electronic controls, moving 700 other jobs to Mexico.

In summary, Carrier will receive a $7 million tax break that will only cover 800 jobs while 1,300 are shipped out of the country.

Trump repeatedly said during the presidential campaign that he would levy new taxes and tariffs against companies that outsource jobs, but what he's done (more specially, what Indiana Governor and VP-elect Mike Pence has done) is the exact opposite of that.

Trump isn't going to punish companies that send jobs overseas. He's going to give them all tax breaks. Suckers.

  • mnpollio

    Agreed about the foolishness of the media as touting this as something great. But then the corporate conservative media has the attention span of an ear mite anymore and has conveyed that to too much of the viewing public. If anyone was hoping they would hold this monster’s feet to the fire, they have more than signaled their willingness to normalize him and his equally atrocious cronies. The MSM is well on its way to becoming Trump’s Pravda.

  • KABoink_after_wingnut_hacker

    This idiot Trump has signaled to every corporation in America that any company can threaten to offshore jobs in exchange for tax payer funded windfalls.
    And this is what he does when he micromanages domestically.
    Wait until we see this fools foreign policy initiatives.

  • Aynwrong

    Trump & Pence basically turned “saving American jobs” into a racket with management threatening to bust their own joints out Goodfellas style. Now if companies want a tax cut they don’t have to lobby for it, they hold their own employees hostage while demanding ransom.

  • muselet

    Donald Trump and Mike Pence have set a very dangerous precedent by bribing United Technologies to move only 1300 jobs out of the US instead of 2100. Now every company will have an incentive to stand in line for its own bribe, even companies with no real plans to move jobs.

    Of course, all those lovely tax breaks will reduce federal tax revenues, which means the Rs will have a new excuse to eliminate social programs and pesky government regulations.

    These are going to be a rough four years.


  • It’s maddening that most in the MSM are touting this as a “good deal”. I wouldn’t want him to negotiate on my behalf! Plus, it doesn’t even maintain the status quo, as you pointed out, since we are losing jobs. And finally, it’s not job growth either. The President can’t be running around giving money to individual companies to bribe them to keep a pittance of their jobs here. It’s like a firefighter in the midst of a wildfire running around putting out little bursts instead of addressing the wall of flame that’s coming right at him. His job is to set major policy that makes not only keeping jobs here possible but also opening up new jobs.

    • Dread_Pirate_Mathius

      Stop making sense. We lost the election, so for the next four years, common sense will be on hiatus.

    • muselet

      Kevin Drum this morning:

      [T]his comes to about $1,000 annually per job saved. As these kinds of deals go, that’s not too bad.

      However! Keep your eyes open. Call me cynical if you want, but I have a feeling it might eventually turn out that Carrier got a few more tidbits out of Trump than just this.

      As the old saying has it, the devil is in the details.