In Exchange For Keeping a Thousand Jobs in Indiana, Carrier Will Receive $7 Million in Tax Breaks
As President-elect Donald Trump and VP-elect Mike Pence travel to Indiana today to celebrate the news that Carrier will keep roughly a thousand jobs in the state rather than move them to Mexico, some details of the deal that was struck with company are coming out.
According to the Wall Street Journal, Indiana officials will provide United Technologies Corporation $7 million in tax breaks over the next ten years. United Technologies is the parent company of Carrier. The tax breaks are to encourage Carrier to retain 800 Indianapolis jobs that were scheduled to go to Mexico and about 300 other positions that weren’t moving.
In other words, Carrier is receiving about $7,000 per job.
While Carrier will keep some jobs in the state, more will be heading south.
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 another 700 jobs to Mexico.
At least one political commentator has been critical of the deal Trump and Pence struck with Carrier. In an appearance on CNN yesterday, Keith Boykin labeled the company receiving tax incentives to keep jobs in the state as a form of “economic blackmail.”
[image via screengrab]
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