4 ms·

> When you add back the revenue that would be generated from 13,000 jobs the state will come out well ahead. You haven't proved that statement. I calculate th

by bb88 9y ago

> When you add back the revenue that would be generated from 13,000 jobs the state will come out well ahead. You haven't proved that statement. I calculate that the state will likely recoup it's taxes from personal income only if Foxconn hires 13,000 people for 20 years. Edit: Showing math 20 years * 13,000 people * $70,000 average salary * 17% income tax is around $3 billion.

e12e 9y ago
Note, as mentioned by others, that's probably 3k to 13k "job years", so more like 6M to 150M usd. Not a very good deal. And 70k avg salary seems high?
- shagie 9y ago
  The deal is for workers making $30k/y and an overall average after some time of $53k/y (including white collar jobs).
  - bb88 9y ago
    Good point. That becomes around 40 years then to repay the cost.
    - shagie 9y ago
      So its in the thread... https://www.jsonline.com/story/news/politics/2017/11/24/got-questions-wisconsin-foxconn-deal-we-have-some-of-answers/892538001/ https://www.jsonline.com/story/news/politics/2017/11/24/got-... is the reference for many of the points of numbers. > To receive the state payments, Foxconn would essentially have to hire a sharply escalating number of workers, starting with at least 260 next year and rising to at least 5,200 in 2022 and at least 10,400 by 2027. > Foxconn would have to pay a worker at least $30,000 a year to earn the incentives on that hire, with a required average salary for all workers of $53,900 annually. If Foxconn lies to the state, closes the plant or falls below certain jobs minimums, the company could have to repay some of the incentives.
- bb88 9y ago
  $70k was a "best" case scenario to do the calculation.
shagie 9y ago
What portion of those are Wisconsin state residents? The deal starts out at about 500 workers and ramps up over the period. The deal specified workers making $30k/y and an average includes white collar jobs at $53k/y. Income tax on $30k is 6.27% for earnings between $29k and $326k.

by bb88 9y ago

e12e 9y ago

Note, as mentioned by others, that's probably 3k to 13k "job years", so more like 6M to 150M usd. Not a very good deal. And 70k avg salary seems high?

shagie 9y ago
The deal is for workers making $30k/y and an overall average after some time of $53k/y (including white collar jobs).
- bb88 9y ago
  Good point. That becomes around 40 years then to repay the cost.
  - shagie 9y ago
    So its in the thread... https://www.jsonline.com/story/news/politics/2017/11/24/got-questions-wisconsin-foxconn-deal-we-have-some-of-answers/892538001/ https://www.jsonline.com/story/news/politics/2017/11/24/got-... is the reference for many of the points of numbers. > To receive the state payments, Foxconn would essentially have to hire a sharply escalating number of workers, starting with at least 260 next year and rising to at least 5,200 in 2022 and at least 10,400 by 2027. > Foxconn would have to pay a worker at least $30,000 a year to earn the incentives on that hire, with a required average salary for all workers of $53,900 annually. If Foxconn lies to the state, closes the plant or falls below certain jobs minimums, the company could have to repay some of the incentives.
bb88 9y ago
$70k was a "best" case scenario to do the calculation.

shagie 9y ago

What portion of those are Wisconsin state residents? The deal starts out at about 500 workers and ramps up over the period. The deal specified workers making $30k/y and an average includes white collar jobs at $53k/y. Income tax on $30k is 6.27% for earnings between $29k and $326k.