Foxconn tax break could exceed $1 million per job
Under GOP proposal, job costs could skyrocket if company falls short on promises
Foxconn Jet. Photo by Jeramey Jannene.
MADISON – State taxpayers could be on the hook for as much as $1.5 million per job under a newly released substitute amendment proposed by Assembly Republicans. According to the revised bill language, Foxconn could receive tax credits worth up to $1.5 million per job if the company creates and retains 1,000 jobs over a 15 year period. The high cost per job raises serious questions regarding the state’s break-even point as Assembly Republicans attempt to fast-track a vote with little public input.
“Rather than rushing through a $3 billion tax break for a foreign corporation, we need to make sure Wisconsin taxpayers aren’t being taken for a ride,” said Senate Democratic Leader Jennifer Shilling (D-La Crosse). “As any fiscal conservative knows, the state simply can’t afford to hand over a $1 million check per job to every CEO in this state. That’s not how our private sector is supposed to work. If the bill doesn’t have stronger accountability provisions to ensure job creation targets are being met, taxpayers could be left subsiding a larger portion of this project than we’re being led to believe.”
According to Substitute Amendment 1 introduced by Assembly Republicans, if Foxconn were to create 1,000 jobs and retain those positions over a 15 year period, the company could receive a check from the state for $1.49 billion – approximately $1.5 million per job created. Given the high volatility in the electronics industry, workforce shortage issues and the company’s stated desire to automate its manufacturing operation, it is unclear how many of the promised jobs will materialize.
Foxconn has a well-documented history of failing to meet promised job creation goals. The Washington Post and numerous media outlets have reported on several major projects in Pennsylvania, Indonesia, India, Vietnam and Brazil that failed to produce the number jobs that were promised.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
More about the Foxconn Facility
- Foxconn Will Get State Subsidy For 2022 - Joe Schulz - Dec 11th, 2023
- Mount Pleasant Approves Microsoft Deal on Foxconn Land - Evan Casey - Nov 28th, 2023
- Mount Pleasant Deal With Microsoft Has No Public Subsidies - Evan Casey - Nov 14th, 2023
- Microsoft, State Announce Massive Data Center Expansion, Land Purchase - Joe Schulz - Nov 11th, 2023
- Gov. Evers Announces Microsoft Makes Major Investment in Wisconsin - Gov. Tony Evers - Nov 10th, 2023
- State Can’t Regulate We Energies $100 Million Project for Microsoft - Joe Schulz - Sep 20th, 2023
- Foxconn Selling Green Bay, Eau Claire ‘Centers’ - Joe Schulz - Aug 16th, 2023
- Murphy’s Law: Foxconn Deal Is Still Costing Taxpayers - Bruce Murphy - Jul 6th, 2023
- Microsoft Will Pay $50 Million For Mount Pleasant Data Center Site - Evan Casey - Apr 20th, 2023
- Microsoft Data Center Proposed for Foxconn Land - Evan Casey - Mar 29th, 2023
Read more about Foxconn Facility here
Mentioned in This Press Release
Recent Press Releases by State Sen. Jennifer Shilling
Shilling Will Not Seek Re-election
Apr 2nd, 2020 by State Sen. Jennifer ShillingAfter 20 years of service, Democratic Leader looks to chart a new course
