To the Editor:
President-elect Trump is seeking to improve the business climate in this nation even before he is officially sworn into office. His action that will allow 1,000 workers in the Carrier plant in Indiana to keep their jobs is encouraging. The effect that this will have on the people involved is heart-warming, but there are broader benefits that should be identified.
For the previous eight years, our national debt has doubled approaching $20 trillion. That escalation threatens the very existence of this country.
This has been done despite the warnings of our predecessors, including President John Adams who stated, “There are two ways to conquer & enslave a nation. One is by the sword. The other is by debt.”
Looking at a round number financial impact of this one action in Indiana is an eye opener. According to the Indianapolis Business Journal, the average income for the employees of the Carrier manufacturing plant is about $48,000 per year. The average tax rate for employees is about 20 percent. That means that the average tax amount paid to the government by each of these employees is about $9,600. The 1,000 employees will be giving Uncle Sam about $9.6 million in 2017.
If they had lost their jobs they would have been receiving unemployment payments averaging 47 percent of their income for 26 weeks or about $2.25 million.
That means instead of the government paying $2.25 million they will be receiving $9.6 million - an $11.85 million difference! If the employees received an extension in unemployment payments, as many did during the recent past, that difference would be $14.1 million!
Just looking at the financial significance of this one action, it is easy to see why President-elect Donald Trump is getting so many business people involved in the new administration. There is now a glimmer of light at the end of the debt tunnel.