Three reasons why taxpayers should question the Foxconn deal
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But that isn't even the biggest problem.
3) The state of Wisconsin, which has had a series of high-profile budget battles over the past few years, is promising a $3 billion incentive package for the plant. That is $3 billion paid to Foxconn over a 15-year period.
To put that into perspective, Wisconsin is promising to pay Foxconn the equivalent of $66,600 per employee, based on having 3,000 workers in the plant, for each of the next 15 years, while Foxconn is promising pay of less than $54,000 a year. By comparison, the much-touted deal last November to save 800 jobs at a Carrier factory in Indianapolis is costing Indiana $7 million over 10 years—or $875 a year.
There are many questions about this deal, but one thing is certain. This incentive package surely offsets any labor-cost issues Foxconn might face since Wisconsin taxpayers are essentially paying Foxconn's wages.
In a market economy, companies taking risk and hiring workers is a necessary ingredient to prosperity. That is not what is happening here. Foxconn bears no meaningful risk in this deal. All the risk and all the labor costs for the next decade and a half are borne by the beleaguered taxpayers of Wisconsin.
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http://www.gazettextra.com/20170804/other_views_three_reasons_why_taxpayers_should_question_the_foxconn_deal
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