ELDER PATRIOT – The mainstream media continues doing the dirty work for the globalist corporations that own it. They’ve spent the weekend denigrating Donald Trump’s success at saving approximately 1000 jobs by keeping Carrier from abandoning their production facility in Indiana.
Make no mistake that Trump accomplished this without committing a cent of taxpayer money. He couldn’t. He’s not yet president and therefore he has no authority to.
Trump simply brokered a deal between the governor of Indiana and a corporation operating within his state for tax reductions and perhaps other unspecified incentives. This has the mainstream media turning to their usual suspect economic “analysts” for criticism of the deal.
To quote one source that represents the totality of the MSM echo chamber, “but experts have nonetheless argued that it sets a troubling precedent. There is little, after all, to stop other companies from threatening to move jobs to win similar concessions. And such deals offer ample opportunity for corruption and abuse as politicians decide which companies deserve help and which jobs deserve saving.”
Here’s an idea, let’s do away with all corporate taxes so politicians will no longer be able to allege favoritism and/or corruption. Of course, that solution would never fly for these globalist sycophants because that would actually serve to make our products more competitive in international markets and cheaper for consumers here at home.
The argument continues:
“Even setting aside such concerns, incentives like the ones Indiana offered simply aren’t a practical strategy for preserving or creating a meaningful number of jobs in a country of 300 million people.”
That may be true but serious tax reduction is a major part of the solution. Lessening the cost of regulation and bringing down energy costs by re-opening access to our abundant supplies will allow us to reduce production costs and to finally take advantage of the lower transportation costs built into products make here.
So, are the naysayers concerns based on economic reality?
The answer is a resounding no. Here’s why.
The basis of the deal has its pillars in lowering Carrier’s tax burden. It’s not but it should be common knowledge that corporations do not pay taxes they build them into the price of their products. Corporations either show profits or go out of business. That means that the result of letting Carrier keep more of their tax dollars should leave their customers paying less to buy the company’s products thereby leaving more money in the wallets of its customers to spend elsewhere in the economy.
It’s been estimated that keeping those thousand workers employed at Carrier may be worth as much as $100 million annually to the local economy. Wages paid to Carrier’s employees alone will account for half that amount. Trump convinced Governor Pence to give Carrier $7 million in incentives over 10 years. Over those ten years the deal prevents $1 billion from deserting the local economy. That’s a bad deal?
“But wait,” say the left’s economic geniuses in unison, “Trump also threatened Carrier with a 35% tariff.” If Trump gets the corporate tax relief on the federal level that likely won’t be necessary.
The United States currently punishes the customers of successful corporations by adding 38.9% to corporate profits that are added directly to the price that consumers pay. In China, only a 25% tax is similarly applied.
Trump campaigned on reducing our corporate income tax rate to 15%. Currently we have the world’s third highest corporate tax rate behind only the UAE and Puerto Rico. Trump’s proposal would drop us to among the twenty lowest rates in the world.
Coupling tax savings to consumers with significantly reduced transportation and regulatory costs will make products manufactured here at home competitive in price with their foreign competitors. If Trump’s energy policy passes that will only serve to drive production (and therefore consumer) costs even lower.
More employment for Americans will result in expanded markets and greater consumption propelling our economy forward.
The argument against Trump’s plan falls short on two other fronts.
New York Governor Andrew Cuomo has been trying to lure industry back to his state by offering them zero taxes for ten years. Cuomo’s strategy puts the screws to companies that were previously loyal to New York by offering to make relocating companies more competitive than NY State’s long time businesses.. In contrast, Trump simply convinced Governor Pence to reward a loyal company that had found itself without options.
The real lesson from both Cuomo and Pence’s approaches is that taxes chase away business. The only difference is do we wait until our communities have become burnt out shells before we willingly recognize this truth.
Finally, it’s time to acknowledge that taxes on productivity were deliberately created and implemented precisely so that politicians could determine winners and losers.
Finally, for the media to suddenly be alarmed that, “such deals offer ample opportunity for corruption and abuse as politicians” exposes their incredible hypocrisy and bias against Trump.
Why weren’t they asking these questions of President Obama when, operating without a budget, doled out tens of trillions of tax breaks and direct payments to his favorite companies? And, why if the MSM is so determined to maintain the purity of our politicians, did they purposely disregard four decades of Bill and Hillary’s reign of corruption?