Foxconn tax subsidies to build Wisconsin plant reach over $4 billion
6 January 2018
Another billion dollars will be handed from the state of Wisconsin to the Taiwanese electronics manufacturing giant Foxconn to build its plant in Racine County in southeastern Wisconsin. The original $3 billion incentive package, put together in July 2017 when Foxconn officially announced it plans, now stands at over $4 billion.
Foxconn, notorious for its brutal working conditions in China where workers build iPhones and other electronic devices and parts, will construct a 20-million-square-foot factory that will produce LCD panels for TVs and other consumer electronics. It is expected to break ground in the coming months.
The recently added incentives will partially cover payments, originally to be paid for by Foxconn, for infrastructure projects such highways, sewers and power lines.
Under the 29-page contract between Foxconn and the state of Wisconsin, the rest of the multi-billion-dollar incentive will come in tax credits. Foxconn will be given up to $1.35 billion in construction-related tax credits if it creates and fills 8,450 jobs by 2025. It will receive an additional $1.5 billion in tax credits if it creates a total of 13,000 jobs by 2022 and maintains that total through 2032.
However, after 2032, Foxconn will have the ability to cut jobs and lay off as many workers as it likes without any monetary repercussions. Additionally, there are no binding agreements to guarantee any jobs.
After 2032, Foxconn, with plans likely already in place, will seek to lay off as many workers as possible and hire on new workers at lower pay and replace the rest with a robotic workforce. Accordingly, Wisconsin’s Legislative Fiscal Bureau estimated the public funds handed to…