Trump announces 35 percent punishment tax on companies that offshore jobs

Last Tuesday, Carrier announced it would keep about 1,000 jobs in the USA after negotiations with Trump and Vice President-elect Mike Pence, who is now the governor of Indiana.

Rafael Sanchez, the chief investigator at ABC affiliate RTV6 in Indianapolis, told The Huffington Post that he applied for credentials through Trump’s site and received an email Thursday morning that his request had been denied. When companies make good business decisions, sometimes the pain of laying off American workers is outweighed by the benefits of increasing profits, paying more in taxes and hiring more Americans in other parts of the (growing) business.

Trump has said he intends to impose a 35% tariff on companies that move jobs overseas, on Sunday saying in a tweet that those who do move jobs abroad are “making a very expensive mistake”.

Trump said he plans to give companies incentives to stay in the United States by lowering corporate taxes and slashing regulations. The move would leave 300 employees with an average pay of $25 per hour out of work, according to the Indianapolis Star.

While Trump is being criticized for handing out $7 million in tax breaks to United Technologies, by keeping jobs in IN, has nonetheless begun to make good on an election promise.

Critics of the deal say it amounts to little more than a “shakedown”.

He followed up with Carrier and made a deal that saved hundreds of jobs. Carrier happens to be in the home state of Gov. Mike Pence, the vice-president elect, and its parent company, United Technologies, is a major defense contractor that can’t afford to alienate a big customer, the federal government.

He also predicted that Carrier sales will skyrocket over the next six months. I think it’s odd that United Technologies relented even though Pence was sure negotiations were going nowhere.

Among them are self-described socialist and 2016 Democratic presidential candidate Bernie Sanders and 2008 GOP vice-presidential nominee Sarah Palin, who suggest the deal was an example of “crony capitalism”.

I think that Pence could have gotten something better than that.

“Republicans oppose this, remember?” she continued. In that regard, Lawrence Summers, former U.S. Treasury Secretary, wasted no time blasting Trump, calling the president-elect’s intervention “a risky shift away from American capitalism”.

Trump said in a series of tweets on Sunday that companies outsourcing their operations to another country will face “retribution” in the form of a steep tax hike. The problem with our rigged economy is not that our policies have been too tough on corporations; it’s that we haven’t been tough enough.