Bringing Jobs Back to America (with your tax money)

Foxconn Coming to Wisconsin.

Free market or corporate welfare?

The "incentive package" contemplated as part of the Foxconn deal will total $3 billion over 15 years, including $1.5 billion in state income tax credits for job creation; up to $1.35 billion in state income tax credits for capital investment and up to $150 million for the sales and use tax exemption. In other words, just over $230,000 for each new job that Foxconn may (or may not) create.
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http://www.zerohedge.com/news/2017-07-26/foxconn-get-230000-incentives-every-wisconsin-job-created

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Or in OTHER words...$15,385 in tax credits per job per year. With the estimated annual income of said jobs to be over $50k. $34,615 net positive per job per year for jobs that would've never existed otherwise.

Or since the author prefers big numbers for shock effect without breaking them out...

$9,750,000,000 in wages paid - $3,000,000,000 in tax credits & exemptions
= $6,750,000,000 over 15 years or 450,000,000 per year

Extending massive tax breaks for 10 to 20 years is about as commonplace as it gets in attracting relocating or expanding companies.

Look no further than Texas, we extend deals structured like this all the time.

Plano gave Toyota 20 years worth of big tax breaks to relocate from CA. The city also estimated the economic benefit of the deal to be $7 billion over 10 years...massively outweighing the tax concessions.

 

Except they forgot to calculate the huge negatives associated with bringing yet more Californians into Texas.

 

I estimate those damages to surpass $70 trillion over the next 20 years.