4 ms·

The credits are tied to these jobs actually being created, so no jobs => no credits => no problem :)

by Eridrus 9y ago

sidlls 9y ago
Which jobs, is the parent's point. Also I'd be shocked if there weren't a loophole Jupiter could fit through on it.
chiefalchemist 9y ago
Until they threaten to leave, then the whole thing will be renegotiated. That's where the problem comes in.
- Retra 9y ago
  Or the standard "too big to fail" sunk cost fallacy will save them.
state_less 9y ago
Foxconn has a history of making large claims that they don't live up to (e.g. Pittsburgh and Brazil) [1]. It's hard to trust this deal is handled properly when we find it's actually costing 50% more in tax credits after the fact. [1] https://www.nytimes.com/2017/09/20/business/foxconn-trump-wisconsin.html https://www.nytimes.com/2017/09/20/business/foxconn-trump-wi...
krrrh 9y ago
Every other company in the state will have a harder time hiring those workers because they aren't receiving a subsidy bolstering their after-tax profits. It's unfair to make all other business essentially transfer money to one that spins a good story to politicians.
- jrs235 9y ago
  This. Not only does giving credits and incentives to huge organizations harm other local organizations because competing on wages is more difficult for them now, it also increases systemic risk and transfers more power to the Goliath. When "everyone" is dependent on the too big to fail organization, that organization can throw around more threats that they will leave if they don't get what they want. Now everyone is beholden to it. These deals are bad all the way around.
  - tonypace 9y ago
    Foxconn / Hon Hai had an extensive record of doing exactly this in Taiwan. I would be surprised if they haven't done the same in China.
syshum 9y ago
Are they tied in the same way we gave Billions to ISP to give everyone Broadband? I do not have any faith that government will actually enforce the requirement, I have seen it many many many where a company promises X number of jobs for Y tax break, then the actual jobs create is FAR FAR FAR less so the government just passed a new ordinance to adjust X to what ever the company did so they still get the credits even though that did not honor the original deal.

The credits are tied to these jobs actually being created, so no jobs => no credits => no problem :)

sidlls 9y ago

Which jobs, is the parent's point. Also I'd be shocked if there weren't a loophole Jupiter could fit through on it.

chiefalchemist 9y ago

Until they threaten to leave, then the whole thing will be renegotiated. That's where the problem comes in.

Retra 9y ago
Or the standard "too big to fail" sunk cost fallacy will save them.

state_less 9y ago

Foxconn has a history of making large claims that they don't live up to (e.g. Pittsburgh and Brazil) [1]. It's hard to trust this deal is handled properly when we find it's actually costing 50% more in tax credits after the fact. [1] https://www.nytimes.com/2017/09/20/business/foxconn-trump-wisconsin.html https://www.nytimes.com/2017/09/20/business/foxconn-trump-wi...

krrrh 9y ago

Every other company in the state will have a harder time hiring those workers because they aren't receiving a subsidy bolstering their after-tax profits. It's unfair to make all other business essentially transfer money to one that spins a good story to politicians.

jrs235 9y ago
This. Not only does giving credits and incentives to huge organizations harm other local organizations because competing on wages is more difficult for them now, it also increases systemic risk and transfers more power to the Goliath. When "everyone" is dependent on the too big to fail organization, that organization can throw around more threats that they will leave if they don't get what they want. Now everyone is beholden to it. These deals are bad all the way around.
- tonypace 9y ago
  Foxconn / Hon Hai had an extensive record of doing exactly this in Taiwan. I would be surprised if they haven't done the same in China.

syshum 9y ago

Are they tied in the same way we gave Billions to ISP to give everyone Broadband? I do not have any faith that government will actually enforce the requirement, I have seen it many many many where a company promises X number of jobs for Y tax break, then the actual jobs create is FAR FAR FAR less so the government just passed a new ordinance to adjust X to what ever the company did so they still get the credits even though that did not honor the original deal.