Wisconsin Offers Big Subsidies to Lure Foxconn

Commentary & Community

Wisconsin Offers Big Subsidies to Lure Foxconn


The Taiwanese manufacturing giant Foxconn is getting ready to open its North American headquarters in Milwaukee, Wisconsin. Understandably, Governor Scott Walker is proud of this move, which adds onto an announcement that Foxconn will build an LCD manufacturing plant elsewhere in the state. But critics say that the only thing that lured Foxconn to Wisconsin is billions of dollars in corporate welfare.


Gov. Walker dismisses any criticism of the subsidies provided to Foxconn, noting that they were necessary to create thousands of new jobs in the state. These subsidies passed after strenuous lobbying by the governor. He convinced the Republicans who control the legislature to pass the incentive package last year.


Here is how VoteSpotter described the subsidy bill, which passed 20-13 in the state Senate and 59-30 in the Assembly:


To allow the Wisconsin Economic Development Corporation to provide tax credits up to $2.85 billion in a new technology manufacturing zone. The bill also exempts the purchase of construction material in this zone from the state's sales tax.


The sales tax exemption is worth roughly $150 million, making the state subsidy package a $3 billion offer to Foxconn. With other government incentives included, this one company could be receiving as much as $4.5 billion directly or indirectly from taxpayers. There is also a move by a local government to use eminent domain to seize some land designated as “blighted” and turn it over to Foxconn.


The end result would be between 3,000 and 13,000 new jobs created in Wisconsin. While Gov. Walker touts the jobs figure of 13,000, legislators rejected a Democratic proposal that would have required Foxconn to repay its subsidies if it does not create this number of jobs.


Do you support Wisconsin using $4.5 billion in subsidies to lure Foxconn into the state? Should the government designate land as “blighted” so it can use eminent domain to seize it and turn it over to Foxconn or other private businesses?


Copyright © 2018 Votespotter Inc. All rights reserved.