{"id":16187,"date":"2016-12-01T06:02:33","date_gmt":"2016-12-01T06:02:33","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=16187"},"modified":"2016-12-01T06:02:33","modified_gmt":"2016-12-01T06:02:33","slug":"trump-puts-companies-on-notice-with-carrier-deal","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/trump-puts-companies-on-notice-with-carrier-deal.html","title":{"rendered":"Trump puts companies on notice with Carrier deal"},"content":{"rendered":"

Trump puts companies on notice with Carrier deal<\/span><\/strong><\/span><\/h2>\n

Trump puts companies on notice with Carrier deal:-<\/strong> Donald Trump and Mike Pence will take a victory lap in Indianapolis on Thursday to tout what they are presenting as a successful negotiation with Carrier to keep nearly 1,000 U.S. jobs from moving to Mexico.<\/span><\/p>\n

Trump\u2019s transition team said the effort shows that the president-elect is determined to keep his campaign promises to protect U.S. jobs and workers.<\/span><\/p>\n

\u201cWhat happened with Carrier is a great first example to the country, if not the world, that the USA is open for business,\u201d a triumphant Kellyanne Conway, Trump\u2019s former campaign manager and top adviser, told The Hill in remarks Wednesday. <\/span><\/p>\n

She characterized Carrier\u2019s decision to keep the jobs at its Indianapolis plant as a winning negotiation led by Trump that could be duplicated once the businessman takes office.<\/span><\/p>\n

Few details were revealed on Wednesday about what was offered to Carrier, which is owned by United Technologies, a much larger company based in Connecticut that has contracts with the U.S. government.<\/span><\/p>\n

Media reports suggested that Carrier, which produces furnaces in Indianapolis, would keep about 850 jobs in the state and was given tax incentives by Indiana\u2019s government to stay.<\/span><\/p>\n

Carrier in a statement Wednesday said incentives offered by Indiana were \u201can important consideration\u201d in its decision, but offered no further details.<\/span><\/p>\n

The White House downplayed the news, saying President Obama\u2019s policies had created more than 800,000 manufacturing jobs.<\/span><\/p>\n

But Trump\u2019s team argued the Carrier decision shows Trump can build a positive climate for business \u2014 behind an overhaul of the tax code and reduction of regulations \u2014 that will grow the economy at a faster pace than what has been seen during the Obama years.<\/span><\/p>\n

\u201cIf you actually create a climate where employers feel the incentives are good enough to stay here \u2014 the taxes will be lowered, the regulations won\u2019t be so oppressive, they won\u2019t be under the burden of ObamaCare, they feel like there\u2019s a more hospitable business climate \u2014 many of them may reconsider and stay,\u201d Conway said.<\/span><\/p>\n

John Feehery, a Trump supporter and a Republican strategist who is also a columnist for The Hill, deemed Trump\u2019s use of the bully pulpit to keep American jobs here \u201cgreat politics.\u201d<\/span><\/p>\n

Republican strategist Alice Stewart said \u201cit\u2019s extremely smart\u201d of Trump to \u201cshow evidence this early that he\u2019s able to negotiate policies that will work.\u201d<\/span><\/p>\n

\u201cHe made it clear throughout the campaign that part of his economic plan would be to put tariffs on companies that take their manufacturing plants overseas,\u201d said Stewart, who served as communications director for Sen. Ted Cruz (Texas) during the GOP presidential primaries.<\/span><\/p>\n

Fiscally conservative groups are staying quiet about the deal for the time being.<\/span><\/p>\n

But if it turns out that Trump and Pence have offered any special concessions to Carrier \u2014 either at the federal level or the state level, given that the vice president-elect is still the governor of Indiana \u2014 then those free-market groups are likely to cry foul.<\/span><\/p>\n

\u201cThe particulars of this agreement haven\u2019t been released, but our position on corporate welfare is well-known and that has not changed,\u201d said Brent Gardner, chief government affairs officer at Americans for Prosperity. The group is the major grassroots organization within the network of conservative mega-donors Charles and David Koch.<\/span><\/p>\n

Chart Westcott, a Texas-based investor who belongs to the Koch donor network, said that considering United Technologies is a major defense contractor, he would have no trouble if \u201cTrump went in there and simply was using his leverage \u2026 saying, \u2018Look, you want to do business with us? This is part and parcel of doing business, is not shipping American workers overseas.\u2019 \u201d<\/span><\/p>\n

\u201cI\u2019d see that as a positive,\u201d Westcott said. \u201cThat\u2019s just saving American jobs using the leverage and the bully pulpit of the U.S. president.\u201d<\/span><\/p>\n

But if Trump cut a deal with Carrier in which American taxpayer dollars are being spent, \u201cthen that\u2019s a huge moral hazard and not necessarily a good thing for the U.S. taxpayer, even if it is great for the workers at Carrier,\u201d Westcott added.<\/span><\/p>\n

\u201cThat\u2019s the kind of government interference that I oppose.\u201d<\/span><\/p>\n

\u201cSo the devil,\u201d he added, \u201creally is in the details.\u201d<\/span><\/p>\n

In two speeches toward the end of the presidential campaign, Trump argued against using incentives like low-interest loans and tax cuts to entice U.S. firms to stay put.<\/span><\/p>\n

\u201cThat\u2019s not what they need,\u201d Trump said in August during remarks in Pennsylvania. \u201cThey have money. They want to go out, they want to move to another country, and because our politicians are so dumb, they want to sell their product to us and not have any retribution, not have any consequence. So all of that\u2019s over.\u201d<\/span><\/p>\n

Trump\u2019s ascent to the Oval Office could make U.S. companies think twice about relocating overseas, for fear of triggering his wrath and that of his supporters.<\/span><\/p>\n

But at least one economist said Trump\u2019s willingness to negotiate one-on-one with a company raises the specter that other CEOs would threaten to leave the country in exchange for a sweeter deal.<\/span><\/p>\n

What isn\u2019t in dispute is that Trump is breaking new ground as negotiator in chief, splitting with the Republican Party\u2019s free-market orthodoxy.<\/span><\/p>\n

For now, many Republicans appear willing to go along.<\/span><\/p>\n

House Freedom Caucus Chairman Jim Jordan (R-Ohio), a leading conservative in Congress, said Wednesday he had no issues with Trump personally getting involved to prevent the outsourcing of jobs.<\/span><\/p>\n

\u201cWhat I know is jobs that were slated to leave are here, are staying. I think that\u2019s positive, that\u2019s good, that\u2019s great,\u201d Jordan told The Hill in an interview.<\/span><\/p>\n

\u201cMy attitude is, if the president of the United States thinks it\u2019s in the best interest in the country, that\u2019s good that he\u2019s standing up and encouraging business to stay here and keep jobs here in the United States.<\/span><\/p>\n

\u201cThat\u2019s a good thing. I don\u2019t think anyone would disagree with that, and certainly no one is saying he did anything unconstitutional.\u201d<\/span><\/p>\n

Source:-\u00a0http:\/\/thehill.com\/homenews\/administration\/308219-trump-puts-companies-on-notice-with-carrier-deal<\/span><\/p>\n

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