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Wisconsin Lawmakers Vote To Pay Foxconn $3 Billion To Get New Factory (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: The Wisconsin Assembly voted 59-30 on Thursday to approve a bill to give incentives worth $3 billion to Taiwan-based Foxconn so that the company would open its first U.S. plant in the state. Foxconn, best known for supplying parts of Apple's iPhones, will open the $10 billion liquid-crystal display plant in 2020, according to Reuters. The bill still has to be approved by a joint finance committee and the state Senate. Both houses of Wisconsin's legislature are controlled by Republicans, and the deal is supported by Wisconsin Governor Scott Walker, a Republican who negotiated the deal. The vote was largely, but not entirely, along party lines. Three Democrats joined 56 Republicans in supporting the deal. Two Republicans and 28 Democrats voted against it. Opponents said the deal wasn't a good use of taxpayer funds. The $3 billion incentives package includes about $2.85 billion in cash payments from taxpayers and tax breaks valued at about $150 million. The state is also waiving certain environmental rules.
I think they target 30 years. Too bad that the factory will close within 10 years. Foxconn already preps for that claiming that there is not enough skilled labor in that region. So why the heck build a factory there? Ah yes, they get to keep all the government handouts.
The US government does this all the time. Talk badly about "socialism" when the topic is poor people, healthcare etc, but take money from those people to pay billionaires and wealthy corporations and banks so that they can continue to profit.
The math is crazy. They could pay 13,000 people $15,384 per year for 15 years for $3 billion. Which I know doesn't make any sense, especially considering the $3 billion in cash isn't a pre-existing sum and probably represents some kind of long term payroll tax refund, which is why its tied to the employment and projected wage numbers.
You would think, though, that if they were willing to lay out that kind of money as an incentive it would be better in some kind of startup fund or small business capital expansion program. The same $3 billion could provide $1 million per year to 207 small businesses or startups for 15 years.
The latter seems like it would be more likely to create a stronger and more diverse economy, especially if the money helps grow established small businesses.