4 ms·

4.5bn / 15 / 13,000 = $23k cost per job created, give or take, plus the chance for a boosting of local manufacturing. That seems perfectly reasonable.

maksimum 9y ago
$23k tax collected / job created with a 7.65% state tax rate, roughly means a $300k salary per job for 15 years. Sure sales tax and real estate taxes will help some, so let's be generous and say you only need $200k in average salary for 13k workers over 15 years. That still sounds completely unreasonable to me. I feel like governments would come out ahead if they refused to negotiate. I guess with multinationals the nash equilibrium leads to governments all ratting out each other... Isn't there something game theory can do to save us here?
- oarsinsync 9y ago
  The prisoners dilemma ultimately proves that in the short term, while you win more if everyone works together, you ultimately risk losing less if you don't work together. Or rather, if you think another govt might blink and screw you, blink first and screw them to avoid being screwed more by them.
spatley 9y ago
23k per year of incentives for each job created? With an average household income of 66k/year? https://www.point2homes.com/US/Neighborhood/WI-Demographics.html https://www.point2homes.com/US/Neighborhood/WI-Demographics.... Shirley you must be joking. (apologies to Abrahams, Zucker and Zucker)
shagie 9y ago
Potentially quite a bit higher depending on how numbers play out. http://www.politifact.com/wisconsin/statements/2017/aug/16/jennifer-shilling/wisconsin-paying-foxconn-1-million-job-possible-if/ http://www.politifact.com/wisconsin/statements/2017/aug/16/j... > Shilling said about a $3 billion incentive package being offered by the State of Wisconsin: "Foxconn tax break could exceed $1 million per job." > We found in a previous fact check that the state would not be paying Foxconn $3 billion for 3,000 jobs -- or $1 million per job -- because the full $3 billion would be paid only if 13,000 jobs are created. > In Shilling’s favor, if Foxconn invests at least $9 billion in its plant as it has said it will -- but hires only 1,500 workers -- the incentives paid would exceed $1 million per job. Make sure that one also takes into account https://www.revenue.wi.gov/Pages/faqs/pcs-work.aspx https://www.revenue.wi.gov/Pages/faqs/pcs-work.aspx > Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan. These agreements, provide that residents of these states working in Wisconsin will be taxed on income earned as an employee by their home state, and not by Wisconsin. Take into account also the relative unemployment rates of the area - https://www.bls.gov/lau/maps/aamarate.gif https://www.bls.gov/lau/maps/aamarate.gif
bb88 9y ago
I can't tell if you're being ironic or not here.

maksimum 9y ago

$23k tax collected / job created with a 7.65% state tax rate, roughly means a $300k salary per job for 15 years. Sure sales tax and real estate taxes will help some, so let's be generous and say you only need $200k in average salary for 13k workers over 15 years. That still sounds completely unreasonable to me. I feel like governments would come out ahead if they refused to negotiate. I guess with multinationals the nash equilibrium leads to governments all ratting out each other... Isn't there something game theory can do to save us here?

oarsinsync 9y ago
The prisoners dilemma ultimately proves that in the short term, while you win more if everyone works together, you ultimately risk losing less if you don't work together. Or rather, if you think another govt might blink and screw you, blink first and screw them to avoid being screwed more by them.

spatley 9y ago

23k per year of incentives for each job created? With an average household income of 66k/year? https://www.point2homes.com/US/Neighborhood/WI-Demographics.html https://www.point2homes.com/US/Neighborhood/WI-Demographics.... Shirley you must be joking. (apologies to Abrahams, Zucker and Zucker)

shagie 9y ago

Potentially quite a bit higher depending on how numbers play out. http://www.politifact.com/wisconsin/statements/2017/aug/16/jennifer-shilling/wisconsin-paying-foxconn-1-million-job-possible-if/ http://www.politifact.com/wisconsin/statements/2017/aug/16/j... > Shilling said about a $3 billion incentive package being offered by the State of Wisconsin: "Foxconn tax break could exceed $1 million per job." > We found in a previous fact check that the state would not be paying Foxconn $3 billion for 3,000 jobs -- or $1 million per job -- because the full $3 billion would be paid only if 13,000 jobs are created. > In Shilling’s favor, if Foxconn invests at least $9 billion in its plant as it has said it will -- but hires only 1,500 workers -- the incentives paid would exceed $1 million per job. Make sure that one also takes into account https://www.revenue.wi.gov/Pages/faqs/pcs-work.aspx https://www.revenue.wi.gov/Pages/faqs/pcs-work.aspx > Wisconsin currently has reciprocity agreements with four states: Illinois, Indiana, Kentucky, and Michigan. These agreements, provide that residents of these states working in Wisconsin will be taxed on income earned as an employee by their home state, and not by Wisconsin. Take into account also the relative unemployment rates of the area - https://www.bls.gov/lau/maps/aamarate.gif https://www.bls.gov/lau/maps/aamarate.gif

bb88 9y ago

I can't tell if you're being ironic or not here.