Althouse: "The idea of putting the [Foxconn] plant in southeastern Wisconsin originated in April of 2017, during a helicopter ride President Donald Trump took with Reince Priebus..."

November 4, 2018

"The idea of putting the [Foxconn] plant in southeastern Wisconsin originated in April of 2017, during a helicopter ride President Donald Trump took with Reince Priebus..."

"... a Wisconsin native and Trump’s chief of staff at the time. Flying over Kenosha, Priebus’s home town, they passed the empty lot that once held the American Motors Corporation plant. 'Why is all that land vacant?' Trump asked, according to an account Priebus gave to a Milwaukee television station. 'That land should be used.' When Terry Gou, Foxconn’s chairman, came to the White House to discuss Foxconn’s desire to build a U.S. factory, Trump suggested the site in Kenosha. It wasn’t big enough, but the town of Mt. Pleasant, fifteen miles north, pursued the company aggressively, and was ultimately selected by Foxconn in October of 2017. The project moved quickly. Last June, a groundbreaking ceremony was held in Mt. Pleasant to celebrate a political triumph for Trump and [Governor Scott] Walker...."

From "Did Scott Walker and Donald Trump Deal Away the Governor’s Race to Foxconn?/As the public has become aware of the spiraling costs associated with building a new Foxconn plant in Wisconsin, the deal has become something of a political liability for the state’s governor" (The New Yorker). I'm not sure what "Deal Away the Governor’s Race" means, though it seems clear that the deal is done and voting for Walker's opponent (Tony Evers) won't change that. I guess it means that Scott Walker may lose the governor's race because he made that deal.

49 comments:

rehajm said...: Spiraling costs? They mean like tax credits on revenue they would never have if they didn’t have the deal. How itrresponsible. Not like when government invests in public works in an efficient and responsible manner- haha. Who loses the election when that shyte goes down?; 11/4/18, 7:21 AM
David Begley said...: All states engage in big giveaways to attract big businesses.; 11/4/18, 7:22 AM
Drago said...: This comment has been removed by the author.; 11/4/18, 7:32 AM
Drago said...: The Boston "Big Dig" and CA "Not-bullet Train To No Where" crew are now Officially Concerned about a company spending tens of billions to expand facilities and employ thousands.

That money clearly would be better spent transporting the entire population of Honduras to the US for full welfare benefits.

Priorities people.

Priorities.; 11/4/18, 7:33 AM
Dear corrupt left, go F yourselves said...: Bringing in jobs? How dare you!; 11/4/18, 7:36 AM
Mark said...: Hypothetical jobs at present, and based on the glacial place of this project, likely to remain hypothetical.

Meanwhile Kimberly Clark now will close a plant in NE WI, and the people there wonder why their jobs aren't worth state investment vs the folks who plan to drive 15 minutes from Illinois to FoxConn whose jobs are worth a 6 figure investment in each to create.

FoxCon only makes sense as an investment if its primary employees are from this state. As is it's an expensive job program for mostly Illinois employees.; 11/4/18, 7:47 AM
Anonymous said...: Maybe there's been some foot-dragging regarding suicide-net costs.; 11/4/18, 8:15 AM
stevew said...: Old news. I've been reading about this for over a year. There's been quite a dispute over the taking of private land for this project. The smaht set at the NYT's must think promoting this story now will put Evers over the election finish line for the win.; 11/4/18, 8:18 AM
Dear corrupt left, go F yourselves said...: Is Foxcon a private company?; 11/4/18, 8:18 AM
stevew said...: So says wiki: "The company is the largest private employer in Taiwan"; 11/4/18, 8:21 AM
ga6 said...: From a magazine which shares the name with a city who cannot build a four mile subway extension for less that one billion dollars a mile. A city who cannot keep the existing subway in working order...; 11/4/18, 8:29 AM
Dear corrupt left, go F yourselves said...: You really cannot count on the left to be honest.

If a local town or state wants to woo a business to re-locate there - is that now wrong?
Think of all the states trying to woo Amazon. Is that bad?

I suppose it's only bad when the R party does it. When the D party does it, it's A-OK! Especially if the big corporation is like Google and sufficiently pro-leftist with the big leftist money to back it up.

Google just built a large campus in smallish Boulder. Everyone hates it, even many local progressives. which is funny - except that it's sad because a lot of local small businesses cannot afford the excessively high property taxes. Google can.; 11/4/18, 8:30 AM
Darrell said...: If Walker loses, Wisconsin will be nicknamed The Fuckhead State.; 11/4/18, 8:45 AM
buwaya said...: Foxconn needs to do this in order to get out of under a Chinese threat.

One day China will either take Taiwan outright, or bring it to heel.
And when it does it will crush the Taiwan-owned economy of Taiwan, for the benefit of mainland enterprises. That, or if they kowtow successfully, make them pay massively to join the Chinese quasi-official large company system. Where they will probably suffer second-class treatment.

The only way out is to move the core of the business somewhere out of the Chinese sphere of influence. Once out Foxconn has leverage. Elsewhere in East Asia is not far enough. The US makes the most sense as it is not only the most immune to Chinese pressure but also the largest market.

Yes indeed Foxconn will finish this thing. Capital flight is inevitable, necessary, and they have chosen Wisconsin.; 11/4/18, 8:49 AM
Birkel said...: I think it's cute that Mark believes people who live in Illinois but work in Wisconsin don't pay Wisconsin taxes.

Now, I know Mark didn't type those words but for the life of me that's the only way what he did type could matter.; 11/4/18, 9:01 AM
John henry said...: Mark,

Won't people working at Foxconn pay WI income and other taxes regardless of where they live?

I'd also be interested to hear why Illinois folks will predominate.

Are Badgers tha deplorable?

John Henry; 11/4/18, 9:04 AM
Mark said...: They won't pay property tax among others.

At more than $200,000 per job yeah I am concerned about whether my property taxes, gas and vehicle taxes, etc are supporting a company who builds right by the state border. Our roads suck here, our road projects drag out for forever ... and Walker keeps blaming the Gov from 8 years ago.

In case you haven't noticed, both Janesville and the Fox Valley have plenty of space and desperate need to replace lost paper and car industry jobs lost over the last 25 years.

But hey, let's build it where people can commute from Illinois as they need WI subsidized jobs too; 11/4/18, 9:17 AM
John henry said...: Foxconn has something like 800m employees in China.

Kenosha is a big deal for us, chump change (@2%) for them.

I hope they wind up moving even more to the US.

John Henry; 11/4/18, 9:35 AM
Birkel said...: Mark, the populist and nativist voter for Wisconsin issues, opposes Trump who expresses the same views about America.

Mark won't let logic stop his public self-beclowning.; 11/4/18, 9:35 AM
320Busdriver said...: If Evers runs this state it will prompt me to leave when jr graduates HS in 1.5 years.

No sense in commuting to the west coast from tax hell.; 11/4/18, 9:40 AM
buwaya said...: Even a US foothold is a valuable bargaining chip.
And Foxconn does not have all its workforce in China.
It is trying to be well dispersed and global.; 11/4/18, 9:54 AM
mccullough said...: If it’s Illinois employees, then other than road costs to ensure their commute, the income tax gained will not be spent on schools that benefit their children.

Does Wisconsin fund roads out of local property taxes?

Illinois is in miserable financial condition. It’s actually losing population. I wouldn’t worry about Illinois workers taking those jobs. They will move to Wisconsin. It’s not like Waukegan is a thriving place.; 11/4/18, 10:07 AM
MadisonMan said...: Wait -- what?? The New Yorker is predicting a bad thing might happen to a Republican Politician? I didn't read the article -- did they talk to actual citizens in this Great State?

Mark, the commute to Janesville from FIBland is pretty easy. Right up I90, being made better as I type. (Still!); 11/4/18, 10:17 AM
walter said...: Tony Evers!
You have to elect him to see what's in him.; 11/4/18, 10:18 AM
walter said...: Or..
Tony Evers!
Back to the comfort of the wet blanket.; 11/4/18, 10:20 AM
jimbino said...: Illinois has a reciprocal tax agreement with four bordering states: Iowa, Kentucky, Michigan, and Wisconsin. It concerns income taxes for those who work in one state but live in another. Residents only pay income taxes to their home state, regardless of where they work.

What SE Wisconsin sorely needs is an extension to Milwaukee of the Metra line that runs from Chicago's Loop to Kenosha, which would allow residents of both Chicago and Milwaukee an easy commute to Foxconn.; 11/4/18, 10:26 AM
walter said...: mccullough said...They will move to Wisconsin.
--
Some in Illinois are discussing a 40%+ property tax hike to address the oublic sector pension crisis.
Those with property are a already a bit landlocked in terms of selling homes at current property tax rates.; 11/4/18, 10:41 AM
Birkel said...: walter,
Detroit thought the same thing.

jimbino,
That agreement will be withdrawn as Illinois fails. But it is good to know how much bad policy Chicago pushes on its neighbors.; 11/4/18, 11:00 AM
Birkel said...: Trains! The technology of the late 1800s that Democrats cannot deny.

How stupid.; 11/4/18, 11:02 AM
John henry said...: Buwaya

Agree that it is a toehold and, as I said, hopefully it will lead to more.

Foxconn has @800m employees plus a bunch more in Taiwan and other countries.

John Henry; 11/4/18, 11:15 AM
SweatBee said...: The company does have a Wisconsin-sounding name, at least.; 11/4/18, 11:16 AM
Achilles said...: I think the federal government needs to pass a new tax.

Let’s call it the “No handouts to giant companies tax.”

If a local jurisdiction gives specific tax status to any entity that is not available to everyone in residence the federal government will impose a special levy of that amount plus 10% for paperwork costs.; 11/4/18, 11:25 AM
Earnest Prole said...: The proper name for this deal is corporate socialism.; 11/4/18, 11:30 AM
Achilles said...: For the first time in history Republicans will go into election day with a lead in early voting totals.

Is there early voting in Wisconsin?

Republicans are going to more than hold the house.

Is there any special reasons why Wisconsin would be less affected by a red wave than the rest of the country?

Has Evers done anything different than bash 4% growth and record low unemployment and wages rising faster than inflation?; 11/4/18, 11:50 AM
Birkel said...: The arguments against corporate tax advantages have been heard in SC, TN, AL, KY, and other states that attracted manufacturing.

Ask the people of Greer, SC how they feel about BMW after 24 years.
Or ask Vance, AL about Mercedes after 25 years.
Et cetera.

In a perfect world, I too would be against the government handouts.
And Achilles is correct that only a federal law could fix competitive bidding amongst local governments.
But more laws is rarely an answer I prefer.; 11/4/18, 11:51 AM
Achilles said...: Earnest Prole said...
The proper name for this deal is corporate socialism.

The proper term is national socialism. A system where corporations are privately owned but make inside deals with the government and they all serve the same interests crushing competition and putting the government in the role of gatekeeper.

The democrats are not mad that Foxconn got special treatment. They give special treatment to cronies all of the time.

They are just mad that is isn't their crony.

If you implemented my "No Handouts to Giant Corporation Tax" democrats all over the country would squeal like stuck pigs.; 11/4/18, 11:55 AM
Original Mike said...: ”Our roads suck here, ...”

...says the road builder’s lobby.; 11/4/18, 11:57 AM
rcocean said...: "The Boston "Big Dig" and CA "Not-bullet Train To No Where" crew are now Officially Concerned about a company spending tens of billions to expand facilities and employ thousands."

Ha.; 11/4/18, 11:58 AM
Achilles said...: Birkel said...

In a perfect world, I too would be against the government handouts.
And Achilles is correct that only a federal law could fix competitive bidding amongst local governments.
But more laws is rarely an answer I prefer.

That one law would remove thousands of crony deals all over the country.

And the counter argument to yours is that if it is a good idea for one company to get low or no taxes then it is good for everyone else.

And it is good for everyone else.

Our current government structure is almost completely parasitic in nature at the lower levels. City and county governments in particular in Washington State are almost wholly useless and could be 30% of their current size.

Almost all of our local taxes go to a public education system we would be better without.; 11/4/18, 11:59 AM
Original Mike said...: I don’t know how this works. If your job is in State A but your residence is in State B, to whom do you pay state income tax?; 11/4/18, 12:01 PM
Narayanan said...: Let's talk
anchor-companies and / vs anchor-babies; 11/4/18, 12:02 PM
Narayanan said...: Both are appreciation of the USA.; 11/4/18, 12:03 PM
Achilles said...: Original Mike said...
I don’t know how this works. If your job is in State A but your residence is in State B, to whom do you pay state income tax?

Depends on the state.

California is particularly predatory. My father lived and worked in Washington State for years. He got a job teaching in California.

They sold some land to pay off back taxes on the family orchard after it went under. California said that because he was employed in California but a resident in Washington he had to pay state taxes on the sale of land in Washington.

California also withholds 7.5-10% of all sales within California until you fill out a 50+ page questionnaire that essentially boils down to why you are not incorporated in California.; 11/4/18, 12:16 PM
Original Mike said...: It’s not clear to me why Mark thinks Foxconn workers would chose to live in the workers paradise that is Illinois. Their property taxes are even higher than ours and the state is about as bankrupt as you can get. The shit has to hit the fan someday.; 11/4/18, 12:35 PM
Original Mike said...: BTW, I also would prohibit handing out government deals to select companies if I were king. It’s not economically efficient and it is unfair.; 11/4/18, 12:38 PM
Earnest Prole said...: The democrats are not mad that Foxconn got special treatment. They give special treatment to cronies all of the time.

No shit, Sherlock. It's Republican voters that Walker needs, and a bunch of them don't like corporate socialism. Who knew?; 11/4/18, 12:47 PM
Birkel said...: And if Earnest Prole knows anything, it's what Republican voters are thinking.
/sarc; 11/4/18, 12:58 PM
hawkeyedjb said...: And what will Governor Evers do? Tell Foxconn to GTFO? No, he'll be standing there taking credit for those Foxconn jobs. Easy to pretend you'd have made a better deal for Wisconsin. Corporate cronyism is rarely a great thing for taxpayers, but it's ludicrous for a fascist party like the Democrats to pretend they are free-marketers.; 11/4/18, 7:53 PM
Caligula said...: "I think the federal government needs to pass a new tax.

Let’s call it the “No handouts to giant companies tax.”

BUT the competition to attract business does not just happen within countries, it also happens between countries. There are plenty of other countries that will bribe Foxconn to locate facilities there if the USA won't.

Amazon is limited by the nature of its business (it has to locate fulfillment centers reasonably close to its customers). Foxconn, and most manufacturers, are not. It might be convenient if you could forbid this competition, but, your magic wand is just not that powerful.

As with any deal, all that really matters is the answer to the question, "Will you be better off with it or without it?"; 11/5/18, 9:45 AM