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The Libertarian-leaning Representative Justin Amas

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Post# of 65629
Posted On: 12/01/2016 3:03:30 PM
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Posted By: fitzkarz
The Libertarian-leaning Representative Justin Amash, Republican of Michigan, weighed in early:

Now it’s coming from more intellectual circles.

“This is all terrible for a nation’s economic vitality if businesses make decisions to please politicians rather than customers and shareholders. Yet America’s private sector has just been sent a strong signal that playing ball with Trump might be part of what it now means to run an American company,” wrote James Pethokoukis, the DeWitt Wallace Fellow at the conservative American Enterprise Institute.

Liberals have latched onto the tax breaks and incentives offered to Carrier’s parent company, United Technologies, by Governor Pence of Indiana just before he leaves for Washington. Senator Bernie Sanders, independent of Vermont, put it this way in The Washington Post:

In exchange for allowing United Technologies to continue to offshore more than 1,000 jobs, Trump will reportedly give the company tax and regulatory favors that the corporation has sought. Just a short few months ago, Trump was pledging to force United Technologies to “pay a damn tax.” He was insisting on very steep tariffs for companies like Carrier that left the United States and wanted to sell their foreign-made products back in the United States. Instead of a damn tax, the company will be rewarded with a damn tax cut. Wow! How’s that for standing up to corporate greed?

If companies can extract tax concessions by threatening to move to Mexico, they may have found a partner willing to play ball in the new president, the critics say. Economists call that “moral hazard.”
The White House weighs in.

Josh Earnest, the White House press secretary, said that it was unclear at this point why Carrier decided to keep those manufacturing jobs in Indiana, but he has an inkling.

“It does appear that they were offered a substantial economic incentive by the lame-duck governor of Indiana,” Mr. Earnest said.


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