Later On

A blog written for those whose interests more or less match mine.

We should recognize that Scott Walker may simply be stupid: Wisconsin Is Going to Lose a Bundle on the Foxconn Deal

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Kevin Drum has an interesting chart and post. The chart:

The post begins:

It’s official: Wisconsin has approved a deal to bring a huge Foxconn facility to its state. The way this deal works is that Foxconn pays taxes to Wisconsin and Wisconsin provides Foxconn with refundable tax credits—that is, money that’s paid regardless of whether Foxconn has any tax liability. What this means is that it’s possible for Wisconsin to pay Foxconn more than Foxconn pays in taxes. In fact, it’s not only possible, it’s what they expect. Here’s what the deal looks like in cheese-colored chart form.

According to estimates from the Legislative Fiscal Bureau, the money Wisconsin pays to Foxconn will be higher than the combined taxes they get directly from Foxconn and from workers at the Foxconn facility. This annual deficit won’t become positive until 2033. The cumulative deficit won’t become positive until 2042. And this all assumes that Foxconn produces the 13,000 jobs it says it will. If it doesn’t, the deal will look even worse for Wisconsin.

Why enter a deal that’s certain to cost Wisconsin money in the short term and will only become profitable in the long term if Foxconn is still around in 25 years—a long time in the tech industry? . . .

Read the whole thing.

See also “Wisconsin Just Gave Foxconn $2.85 Billion — and Protection From Its Court System — to Build a TV Factory.” The first paragraph:

On Monday, Wisconsin governor Scott Walker signed a law that will transfer $2.85 billion from his state’s taxpayers to a Taiwanese tech company. The law also allows said company to forgo an assessment of how its plans will impact the state’s environment, and to flout laws meant to protect Wisconsin’s wetlands and waterways. Finally, the legislation stipulates that, should environmentalists, local businesses, or Wisconsin residents sue this company, for any reason, any trial-court rulings against it will be automatically suspended, until a higher court weighs in — should the higher court rule also against it, the company will be able to take its case to the state’s (conservative-dominated) Supreme Court in an expedited fashion. . .

Yes, Scott Walker is stupid. And/or he was paid handsomely on the side by Foxconn.

Written by Leisureguy

21 September 2017 at 5:33 pm

Posted in Business, GOP, Government

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