Something stinks badly.
We’re supposed to believe that President-elect Donald Trump negotiated with United Technologies (UT) management to give them $700,000 in state tax cuts for each of the next ten years in exchange for not exporting roughly 730 jobs in Indiana to Mexico. Exporting those jobs would have saved the company roughly $32.5 million a year. So management gives up $32.5 million for $700,000? Not likely. Something stinks here, as in, we’re not being told the whole story by anybody. Not by the news media, not the twin political parties, not by anybody.
What did Trump really promise UT? Am I right to be suspicious?
Could Trump have promised UT something of much greater value than $32.5 million a year, or at least the same, when he becomes president? UT owns Pratt and Whitney, which manufactures aircraft engines, including US military aircraft. Assuming a 10 percent profit margin, Trump would’ve had to promise a minimum $325 million a year in additional government business to compensate UT for $32.5 million.
If he did this, then he wheeled and dealed with taxpayer money, and he didn’t do a very good job with our money. He got screwed. It appears UT CEO Gregory Hayes took Trump to the back of the shed, slapped him around, and stole the lunch money we’d entrusted Trump with.
It’s difficult to believe UT management would give up $32.5 million a year in exchange for $700,000 a year. Are they really that stupid? What we know about the deal is that Trump caved in to management and failed to use any leverage against UT, such as having the US government cancel a few of those UT contracts if those jobs are exported to Mexico, or threatening to tax the products UT makes in Mexico when they come into the USA. Trump promised he would do this during the presidential campaign, but he didn’t have the courage to do it once push came to shove.
That’s why something tells me this deal is quite a bit shadier than we have been lead to believe.