Carrier closes Indianapolis factory laying off 1,400

Being a former Hoosier, the news hurt. Indiana just lost 2,100 jobs to Mexico. So I did some research. Carrier is part of United Technologies, a 'yuge' government contractor, military contractor. with next sales of $58 billion dollars. As listed online at www.utc/news, last years federal income tax liability for continuing operations was ...$2.111 billion. However, Discontinued operations yielded $2.684 billion in tax benefits.

So shutting down operations created tax credits for UTC.

The portion of the parent company, called Otis, which includes Carrier had $12 billion in sales last year and $2.338 billion in operating profit with a profit margin of 19.9%, adjusted.

So, tell me carefully, how 2,100 jobs paying $30,000 to $50,000 per year will make a difference to a $58 billion dollar a year international corporation?

Well it seems, there will be tax credits for shutting down operations. There will be expenses, tax deductable , to be paid. There will be start up costs, tax deductible.

The savings in wages over a year, if the new workers in Mexico are paid nothing, would be less than .001% of all sales. [The correct figure is ... 1/58,000 ...]But, tax benefits of the additional expenses would be 8.6% of sales.
So the workers, through their payroll taxes, are financing the move. And, so are you.

The move has nothing to do with 'taxes' as a penalty as the net taxes for UTC seem to be a negative $584 million last year.

Bottom line, the move does benefit the company because our tax codes finance the move.