|"Only dull people are brilliant at breakfast"
|"The liberal soul shall be made fat, and he that watereth, shall be watered also himself."
-- Proverbs 11:25
The Benton Harbor, Michigan based Whirlpool corporation, which recently received a $19 million dollar stimulus grant from the Dept. of Energy to develop smart grid capable appliances, moved forward with plans to close it’s Evansville, Indiana refrigerator plant and build a new plant in Mexico.
Whirlpool closed the plant in June, eliminating 1,100 full-time jobs. They did this all the while the company is collecting public subsidies while eliminating jobs.
After buying the Maytag brand in 2006 Whirlpool shut down the manufacturing headquarters which at its peak Maytag had 4,000 workers in Newton, Iowa a town of 16,000 people 30 miles east of Des Moines. Newton is a great case study on what happens when the company town packs up and leaves. The devastating effects are quickly dominoed throughout the town and surrounding towns. Those 4,000 plus workers were supporting the other local businesses. When Maytag left, people had to leave to find work. When people left we have ghost towns that are popping up all over the United States. Towns that used to thrive, towns that people used to be proud to call home now sit mostly vacant. Is this the ‘new modern economy’ America will build it’s future around?
Taxes? That’s for poor people…
Whirpool, the world’s largest appliance maker, has been a major tax dodger. The company had negative income tax rates over the past three years, and reported a $64 million income tax benefit last year. It expects similar results this year:
Meanwhile sales at the appliance maker rose 7 percent to $18.4 billion last year after dropping during the housing slump of the previous two years. In the year-earlier quarter, the company attributed a rise in revenue to increased productivity.
Whirlpool had negative effective income tax rates in 2010, 2009 and 2008. Last year, the company reported an income tax benefit of $64 million and an effective tax rate of negative 10.9 percent, according to company filings. The company expects a similar tax benefit in 2011.