The math from Carrier job-saving deal shows the truth

It is interesting to me that no one has done all the math on the Carrier job-saving deal in Indiana.

I read that the average pay for the saved jobs was $30 per hour. At a 2,000-hour annual job, that is $60,000. If the employee pays tax on only one third of that amount (subtracting exemptions, etc.), the tax rate in Indiana is 3.3 percent, so Indiana would receive $660 in taxes. Additionally, the average unemployment payment is $22,900 per year in Indiana, which would be a savings. Further, FICA tax on $60,000 at 15.3 percent is $9,188 annually. Added together, the gain as opposed to loss by keeping these jobs in the U.S. is $32,478, which is that much less than all the rest of us will have to make up in our taxes due.

Unaccounted for is the unnecessary grief the loss of jobs would have caused the unemployed families. The cost to Indiana to complete this deal was reported as $700 per job spread over a number of years. The cost to the U.S. Treasury is yet to be disclosed, but the U.S. has roughly $25,475 per job to work with, with no loss to the U.S.

It is not surprising what a “businessman president” can accomplish since business people succeed by producing a desired product at a profit or they disappear. I would appreciate any comments regarding the accuracy of my calculations or thoughts that would improve or disprove my observations.

Robert E. Ivy

Bigfork