Thursday, July 27, 2017

Foxconn deal to build massive factory in Wisconsin could cost the state $230,700 per worker

By Danielle Paquette
July 27 at 2:40 PM, WashPost

President Trump hugs Vice President Pence, left, and Wisconsin Gov. Scott Walker after announcing the first U.S. assembly plant for electronics giant Foxconn at the White House on July 26. (Jabin Botsford/The Washington Post) Foxconn, the technology giant that supplies gadgets to Apple, Google and Amazon, has shown willingness to make a huge investment in Wisconsin — in exchange for a similarly hefty commitment from the state.

The Taiwanese company has agreed to build a factory that will stretch 20 million square feet, the size of 11 football fields, and Gov. Scott Walker has offered a set of financial rewards to seal the deal.
On the table is up to $3 billion in state tax breaks. The state legislature could approve the economic incentive package as early as August.

These payouts, Wisconsin officials said, come with lofty expectations. As long as Foxconn keeps hiring U.S. workers at the new flat-screen manufacturing facility, Wisconsin would cut the company $200 million to $250 million a year for up to 15 years.

That works out to a rough cost to the state of about $230,700 per worker, assuming the factory goes on to generate 13,000 jobs.

(More here.)


Blogger Tom Koch said...

More crony capitalism. Sad that many confuse this with the free market.

8:33 PM  

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