Wisconsin's bad deal with Foxconn is a lesson for other states

[Yo_Mama_Been_Loggin]

Two years ago, Taiwanese tech company Foxconn promised to construct a $10 billion factory and create up to 13,000 jobs in the southeast portion of the Wisconsin. Last month, however, the company announced it was altering its plans for the factory. Although the company still intends to build a facility, it is unclear how many and what types of workers that facility would hold.

Now state officials, who pledged big subsidies to the company to land the project, are realizing they struck a bad bargain. The bitter irony is that the entire situation might have been avoided if Wisconsin policymakers had paid heed to sensible constraints embedded in the state constitution.

In exchange for this promised economic development, Wisconsin state officials pledged at least $3 billion in subsidies, much of it cash, to the company. Those in favor of the subsidies assured taxpayers these incentives were merely investments, which would be repaid by increased tax revenue from new workers in the state.

The deal was heavily criticized, and became a big issue in former Gov. Scott Walker’s failed bid for reelection. Critics feared that payments made to the company would take a long time to be repaid, or that the subsidies would never be repaid at all. Those fears seem to be coming true. While some of the subsidy payments were based on the company hitting designated performance benchmarks, the state already is on the hook for at least $1 billion.

https://thehill.com/opinion/technology/431003-wisconsins-bad-deal-with-foxconn-is-a-lesson-for-other-states

So these were subsidies rather than tax breaks?

[rurallib]

1. You would like to think it would be a lesson to others, but it won't

As soon as any company says they might bring some jobs to an area, politicians from the city council to the governor will be lining up to give them tax abatements, free utilities and grounds.

AFAIK states seldom follow up on companies that fail to reach benchmarks.

[LonePirate]

2. Look at Amazon canceling its NYC expansion. The locals are being blamed, not Amazon.

No lessons are being learned.

[Blue Owl]

3. Walker wankery

n/t

[Sneederbunk]

4. Walker is a lesson for other states.

[Wellstone ruled]

5. First,everyone on this Board should

try to serve on Citizen Advisory Boards in your local Governmental area. Learning first hand how these Corporate Pork Barrel things happen and how they happen as well as who the real Players involved are as well as who walks away with the bag of money in the end.

Was fortunate to have that honor to serve on one Board. What a learning experience,honestly,the amount of PR people and Brooks Brothers Suits is just astounding . And did this so called Public Project benefit the City and it's residents,sever years latter,doubt it. It benefited a local Family who were the owners of a Transportation Company and the Contractor who got the Build Bid. Other than that,most of the Citizens could not and would not be able to afford the use of that Transportation Company. And our Advisory Committee's Report proved the probable out come that is now happening in real time.

The City Counsel as well as the County Commissioners had already planned on this Prodject long before our Committee was tasked. So those whom will pick up the tab for Foxxcinn,understand your frustration.

[modrepub]

6. All Politics Are Local

Thanks for your suggestion and service. Lots of complainers never actually try and get involved.

[Wellstone ruled]

7. It is a learning lesson and a real eye opener

as to the real Players in your Community and their hanger-oners . Needless to say,was never approached again to serve. Truth scares the heck out of questionable people and their motives.