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RE: A great article on the Carrier deal
Posted on: December 3, 2016 at 10:10:43 CT
90Tiger STL
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"As Tho Bishop has pointed out, however, what little we know of the deal suggests that it is primarily characterized by tax breaks which cannot accurately be called subsidies. And, if tax breaks are truly behind the deal, there's no reason to criticize the deal because of that.:" - agreed
"This would have translated to lower prices for Carrier's customers, and that would have, in turn, helped Carrier maintain market share and profitability."
- not sure I buy this would result in lower prices for Carrier's customers. that's entirely speculative. Moreover, isn't the tax reduction going to replace that gain for Carrier, and hence result in the same lower prices and profit for Carrier?
Sorry, this isn't a well considered analysis.
Carrier gets reduced costs either by moving or by reducing their state tax burden, rendering the premise of the article to great doubt in my mind.
"This would have translated to lower prices for Carrier's customers, and that would have, in turn, helped Carrier maintain market share and profitability."
- not sure I buy this would result in lower prices for Carrier's customers. that's entirely speculative. Moreover, isn't the tax reduction going to replace that gain for Carrier, and hence result in the same lower prices and profit for Carrier?
Sorry, this isn't a well considered analysis.
Carrier gets reduced costs either by moving or by reducing their state tax burden, rendering the premise of the article to great doubt in my mind.
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RE: A great article on the Carrier deal - 90Tiger MU - 12/3 10:10:43