2017-08-11 — npr.org
Wisconsin lawmakers are preparing to move forward on a $3 billion tax incentive package with technology manufacturer Foxconn, even as a new estimate from the state legislature's nonpartisan budget office revealed the state wouldn't break-even on the deal until 2043.
The estimate focused on the income tax that would be paid by workers at Foxconn, because the manufacturer will qualify for a state tax program that exempts it from paying income taxes. It also assumes the facility will hire the maximum number of employees it has projected for the plant: 13,000.
If the manufacturer doesn't employ that many Wisconsin residents, the state's break-even point would be pushed "well past" the year 2045, the estimate said.
Gov. Scott Walker pushed back on that concern, saying more than tax revenues should be considered when evaluating the deal.
"Foxconn is bigger than just future tax revenues," Walker tweeted. "It adds over $10.5 bil. in payroll to WI economy over 15 yrs + construction & indirect jobs."
The estimate projected the Foxconn facility would create 22,000 "indirect and induced jobs" beginning in 2021, as well as 10,200 construction jobs and 6,000 indirect construction-related jobs, resulting in more than $250 million in tax revenue for the state.
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