The average wage of the jobs being discussed is $35,000. That's $1,000 per year to Indiana, $5300 to the Federal SSI/FICA per year, and about $3,000 per year for Federal income tax. So a total of $9300 to various Governments in taxation on that income. What did it cost to keep those $1,100 jobs? $640 per job, per year. So here's where it comes down:
1. Jobs go away. Governments lose $9,300 per year per job in direct taxation, additional losses due to less economic activity (1,100 income streams significantly depleted), and a large increase in expenses due to unemployment claims.
2. Government lets Carrier keep more of its own money. Jobs do not go away. Government retains $8,600 per year per job in direct taxation, the addtional revenue due to the maintained economic activity, and zero unemployment expenses.
Assuming just a 20% gain from the economic activity of the wages, and $15,000 expense for unemployment per job, this translates into a 10 year net gain of $171 million, as compared to a $198 million net loss. All for a $7 million investment. I guess $370 million difference is irrelevant though because Trump.
A "tax break" is a bundle of cash.
False. It is like the SSI/FICA tax break a while ago. Rather than sending in $3000 to the Federal Government, you only sent in $2200. No money came YOUR way, less flowed out the other way. Giving the tax break in this case results in MORE revenue for the State and the Federal Government than not giving it - and letting the jobs go overseas. Better to lose 3-4 times the tax revenue AND have 1,100 more people out of work? But I get it - Trump - can't say anything good about him, right?
A triangle which has an angle of 135 degrees is called an obscene triangle.