Donald Trump negotiated with United Technology (UT) officials to keep 1000 US jobs from being exported to Mexico. That means, however, that Trump failed to save 1100 other United Technology jobs from being exported to Mexico. Give Trump some credit. He negotiated and won some concessions.
Last year UT announced it would export 2100 jobs to Mexico, and Trump railed about how he would tax the products of any US jobs exporter that manufactured stuff overseas, and then exported their products to the USA. Trump was going to be tough on corporations like UT.
So when push came to shove, tough guy Trump backed down. Trump made a promise to save all of those jobs, and he backed far away. Give him credit, Trump wasn’t as weak-kneed on this issue as President Obama. He saved some of the jobs.
Trump will reportedly give the company tax and regulatory favors that the corporation has sought.
Bernie Sanders wrote,
“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? How’s that for punishing corporations that shut down in the United States and move abroad? In essence, United Technologies took Trump hostage and won. And that should send a shock wave of fear through all workers across the country.”
This sends a loud and clear signal that any corporation can threaten to export jobs and receive tax cuts that will be paid for by US workers.
Instead of being tough, Trump was pummeled into submission. United Technologies makes billions of US defense contracts. Instead of leveraging that, Trump offered them tax cuts. What a wimp! He had them by the financial scotum with those defense contracts, or through the use of selective tariffs, and Trump fell to his knees with a light verbal body blow. Apparently, taking a dive is Trump’s art of the deal.
So what needs to be done?
Sanders wrote, “If United Technologies or any other company wants to keep outsourcing decent-paying American jobs, those companies must pay an outsourcing tax equal to the amount of money it expects to save by moving factories to Mexico or other low-wage countries. They should not receive federal contracts or other forms of corporate welfare. They must pay back all of the tax breaks and other corporate welfare they have received from the federal government (and state governments, and with interest). And they must not be allowed to reward their executives with stock options, bonuses or golden parachutes for outsourcing jobs to low-wage countries. If Donald Trump won’t stand up for America’s working class, we must.”
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