Is Trump’s Deal With Carrier A Form Of Crony Capitalism?

“There’s no reason for them to leave anymore because your taxes are going to be at the very, very low end, and your unnecessary regulations are going to be gone”, he said assuring companies that the USA would be a business friendly destination. “It’s not gonna happen”. That’s basically the deal offered by Trump and Vice President-elect Mike Pence, who happens to be governor of IN (and thus IN a position to offer the tax relief).

US Senator Bernie Sanders, who lost the Democratic primary to Hillary Clinton, said the Carrier deal is incomplete and leaves the incoming Trump administration open to threats from companies. Trump, who promised to be the country’s “negotiator in chief”, has shown that he’s more than willing to trade good PR for American worker stability and corporate profit.

The United Technologies deal, which provides the tax breaks over a decade, also covers another 300 Carrier jobs that were not slated to go to Mexico.

Trump made the announcement during a post-election victory rally Thursday in Cincinnati.

President-elect Donald Trump’s transition team is pushing back against Democrats’ calls for all Cabinet nominees to release their tax returns.

Trump said the $16 million Carrier says it will invest in the plant, which he said was a minimum, will be quickly recouped, because of “the goodwill that you have engendered by doing this”.

“This is a great day for IN and it’s a great day for working people all across the United States of America”, Pence said at the rally before introducing Trump.

“He has signaled to every corporation in America that they can threaten to offshore jobs in exchange for business-friendly tax benefits and incentives”, Sanders wrote. Pence says the company would keep about 400 research-and-development and executive jobs in Indiana.

“It’s a potentially risky policy where you reward a company that threatens to leave”.

November 24: Trump posts on Twitter on Thanksgiving Day that he is working with Carrier to keep jobs in the U.S. The company confirms discussions with the incoming administration but says that it has nothing to announce yet. “You have to create the environment for those businesses to do so well and that’s exactly what President-elect Trump has in mind”, he tells NPR’s Steve Inskeep.

“The President-elect and the Vice President (-elect) picked up the phone and called the CEO of United Technologies and told them we want to keep jobs here”.

Mr. Trump said he plans to unify the nation after the divisive election and asked the thousands who turned out to see him to “dream big again” as he moves to usher in an era of prosperity at home and peace overseas.

Trump also used the occasion to announce he will nominate retired Marine Corps Gen. James Mattis as secretary of defense, calling him “the closest thing we have to Gen. George Patton of our time”.

IN officials offered Carrier $7 million in incentives as part of the deal.

In 2014, the Pence administration awarded $8 million in tax credits to BAE Systems Controls to keep 1,000 jobs at its Fort Wayne facility. Some workers yelled out “Thank you Mr. Trump” and “Thanks Donald” as he greeted them.

Trump did nothing to downplay expectations before he takes office, declaring that “America will start winning again, big league”. It had announced plans earlier this year to shift some production to Monterrey, Mexico, as part of a broader corporate cost-cutting. “I don’t like ’em much, I’ll be honest”, he said in Indiana. “I am just really the messenger – although I have been a very good messenger – let’s face it, right?”

The five-term lawmaker has joined his Republican colleagues in objecting to Obama’s immigration enforcement policies, including those at the border.