Foxconn backing off it's promises

Blueneck

Former Staff
Jun 2007
54,359
41,210
Ohio
#1
Remember those Republican lawmakers & the president with their golden shovels at the Foxconn groundbreaking ceremonies in Wisconsin? Turns out all those manufacturing jobs may not be created after all.

Foxconn Technology Group is reconsidering plans to make advanced liquid crystal display panels at a $10 billion Wisconsin campus, and said it intends to hire mostly engineers and researchers rather than the manufacturing workforce the project originally promised.

*snip*

Foxconn, which received controversial state and local incentives for the project, initially planned to manufacture advanced large screen displays for TVs and other consumer and professional products at the facility, which is under construction. It later said it would build smaller LCD screens instead.

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

“In terms of TV, we have no place in the U.S.,” he said in an interview. “We can’t compete.”
Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant | Reuters

And don't forget this was part of the deal:

To lure Foxconn Technology Group to Wisconsin, state residents will have to do more than just forgo taxes from the Taiwanese electronics giant. They will have to pay cash — writing checks for up to $200 million a year.

The subsidies for the deal would amount to nearly 50 times the previous record paid by Wisconsin taxpayers to secure a manufacturing plant in the state. Instead of getting the previous state standard of 7 cents in tax credits for every $1 in qualifying payroll checks to workers, Foxconn would get 17 cents in credits — a change that will have to be approved in special session legislation Gov. Scott Walker released Friday.

And because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years. When including a $150 million sales tax break for buying construction material, the incentive package could total up to $3 billion, according to the bill that lawmakers could vote on as soon as Tuesday.

Foxconn could get up to $200 million in cash a year from state residents for up to 15 years
'"Makers and takers" on steroids. We're being taken everyday by our elected politicians who choose to take our hard earned pay and give it to their wealthy friends & we get squat in return.

Please let this become a campaign issue!
 
Mar 2012
56,305
37,873
New Hampshire
#3
Remember those Republican lawmakers & the president with their golden shovels at the Foxconn groundbreaking ceremonies in Wisconsin? Turns out all those manufacturing jobs may not be created after all.



Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant | Reuters

And don't forget this was part of the deal:



'"Makers and takers" on steroids. We're being taken everyday by our elected politicians who choose to take our hard earned pay and give it to their wealthy friends & we get squat in return.

Please let this become a campaign issue!
I remember when Trump went out there with the head of FOXCONN in the summer of 2018 and made a snark comment about "what if the democrats win in Wisconsin?" The head said "well that could change things." I wouldnt put it past them to punish them for not putting Walker back in. After all he was the one that gave them everything they wanted. There were rumors they were thinking of heading to Indiana as well.
 
Mar 2012
56,305
37,873
New Hampshire
#4
I have to come to think that the economy of the US is a big game for Trump. He yells "tariffs" and the market collapses. Then after a couple weeks he tweets "trade talks are super" and it goes way up. They are mere cues for his buddies to know when to sell and buy. What looks terrible for the average American or the worst December in the stock market is a huge buying opportunity for the rich. The same thing applies to these conditions of companies, "vote this way and the plant opens." He promised a steel plant reopening in Missouri due to great work by Hawley. Now its opening. WI went for Evers, too bad for them is how he thinks.
 

StanStill

Former Staff
Dec 2013
12,791
14,300
Work
#5
To lure Foxconn Technology Group to Wisconsin, state residents will have to do more than just forgo taxes from the Taiwanese electronics giant. They will have to pay cash — writing checks for up to $200 million a year.

The subsidies for the deal would amount to nearly 50 times the previous record paid by Wisconsin taxpayers to secure a manufacturing plant in the state. Instead of getting the previous state standard of 7 cents in tax credits for every $1 in qualifying payroll checks to workers, Foxconn would get 17 cents in credits — a change that will have to be approved in special session legislation Gov. Scott Walker released Friday.

And because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years. When including a $150 million sales tax break for buying construction material, the incentive package could total up to $3 billion, according to the bill that lawmakers could vote on as soon as Tuesday.
Socialism and welfare for the rich, and market discipline for everyone else. Welcome to Trump Country. #MAGA
 

johnflesh

Former Staff
Feb 2007
26,164
18,633
Colorado
#7
Remember those Republican lawmakers & the president with their golden shovels at the Foxconn groundbreaking ceremonies in Wisconsin? Turns out all those manufacturing jobs may not be created after all.



Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant | Reuters

And don't forget this was part of the deal:



'"Makers and takers" on steroids. We're being taken everyday by our elected politicians who choose to take our hard earned pay and give it to their wealthy friends & we get squat in return.

Please let this become a campaign issue!
I couldn't agree more. This should be a campaign issue.
 

Blueneck

Former Staff
Jun 2007
54,359
41,210
Ohio
#8
I remember when Trump went out there with the head of FOXCONN in the summer of 2018 and made a snark comment about "what if the democrats win in Wisconsin?" The head said "well that could change things." I wouldnt put it past them to punish them for not putting Walker back in. After all he was the one that gave them everything they wanted. There were rumors they were thinking of heading to Indiana as well.
More Donors to Gov. Scott Walker’s Campaign Get Foxconn Contracts

They're just taking our money and passing it around up there.
 
Jun 2007
19,845
10,073
Wisconsin
#9
Remember those Republican lawmakers & the president with their golden shovels at the Foxconn groundbreaking ceremonies in Wisconsin? Turns out all those manufacturing jobs may not be created after all.



Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant | Reuters

And don't forget this was part of the deal:



'"Makers and takers" on steroids. We're being taken everyday by our elected politicians who choose to take our hard earned pay and give it to their wealthy friends & we get squat in return.

Please let this become a campaign issue!
Smart Republicans and Democrats saw this coming from a million miles away. The Wisconsin taxpayer was going to be left holding the bag regardless of whether Foxconn created those jobs or not, but the hurt just got worse. They’ve done it before but this is on a grander scale.
 

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