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Some estimates show that to cover the generous incentives Wisconsin will most likely need to pay Foxconn cash from the treasury for the foreseeable future: htt

Some estimates show that to cover the generous incentives Wisconsin will most likely need to pay Foxconn cash from the treasury for the foreseeable future: http://www.jsonline.com/story/news/politics/2017/07/28/foxconn-could-get-up-200-million-cash-year-state-residents-up-15-years/519687001/ http://www.jsonline.com/story/news/politics/2017/07/28/foxco... The "local jobs" argument is eroded further for Wisconsin when you consider that the proposed sites are all well within commute range for a large population of Illinois residents - something that didn't seem to occur to WI legislators until far too late in this "deal": https://www.reuters.com/article/us-foxconn-wisconsin-illinois-idUSKCN1B42DZ https://www.reuters.com/article/us-foxconn-wisconsin-illinoi... As a Wisconsin resident who's town (near the proposed sites) is overrun with Illinois license plates this was an obvious issue from the beginning (on top of everything else). My (somewhat cynical) belief is that Foxconn has been several steps ahead of our local politicians (who are desperate to put up healthy job numbers). This "realization" of the proximity to Illinois is likely (and unfortunately) the first of many ways Wisconsin is going to get schooled by Foxconn here.

diddid 9y ago
Nowhere in that article does it state how they’ll just get checks. Maybe I’m not understanding tax credits because that article says the same thing, they will get up to 200 million a year in tax credits. If you have no tax, you get no credit. Better than a deduction, but not writing a check. Anything past that is all “some estimates” which really are just people making things up. Also, people commute, you can’t stop them all. That’s the nature for all business and it’s part of the game you play with these deals.
- kkielhofner 9y ago
  The article states: "... because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years." Put another way: http://fortune.com/2017/07/31/foxconn-wisconsin-plant-tax-breaks/ http://fortune.com/2017/07/31/foxconn-wisconsin-plant-tax-br... "Although the state measures to attract Foxconn are labeled tax incentives, they largely would be paid in cash since the effective Wisconsin state tax rate is 0.4% on manufacturers." Of course people commute (and they should)! However, for a state negotiating an incentive package they should have been aware of this basic fact, especially given the extremely close proximity to another state that (amazingly) isn't contributing to the incentive package.

diddid 9y ago

Nowhere in that article does it state how they’ll just get checks. Maybe I’m not understanding tax credits because that article says the same thing, they will get up to 200 million a year in tax credits. If you have no tax, you get no credit. Better than a deduction, but not writing a check. Anything past that is all “some estimates” which really are just people making things up. Also, people commute, you can’t stop them all. That’s the nature for all business and it’s part of the game you play with these deals.

kkielhofner 9y ago
The article states: "... because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years." Put another way: http://fortune.com/2017/07/31/foxconn-wisconsin-plant-tax-breaks/ http://fortune.com/2017/07/31/foxconn-wisconsin-plant-tax-br... "Although the state measures to attract Foxconn are labeled tax incentives, they largely would be paid in cash since the effective Wisconsin state tax rate is 0.4% on manufacturers." Of course people commute (and they should)! However, for a state negotiating an incentive package they should have been aware of this basic fact, especially given the extremely close proximity to another state that (amazingly) isn't contributing to the incentive package.