(December 2, 2016 at 9:05 am)alpha male Wrote: $7 million subsidy divided by 1,000 jobs equals $7,000 per job.
Laid off workers can collect unemployment for 26 weeks. $7,000 divided by 26 equals $269. In IN, that amount equates to annual earnings of about $30,000.
So, if the average earnings of a laid off worker is over $30,000, the government is saving money on this deal.
That doesn't even factor in that the workers will be paying taxes themselves, or that the unemployment would be paid over 6 months, whereas the incentives are stretched over 10 years.
So, if this sets a precedent - great!
I don't care if the government is saving money, I care that a corporation, to use a little hyperbole, held the government hostage with this deal. Being rewarded for keeping 800 jobs... not even the full 2,100... you know what I mean when I talk about a precedent, right?