Corporate welfare is no bargain in Wisconsin | Arkansas Blog

Wednesday, August 9, 2017

Corporate welfare is no bargain in Wisconsin

Posted By on Wed, Aug 9, 2017 at 7:26 AM

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That big Chinese investment in an industrial development in Wisconsin in return for $3 billion in state incentives? It'll be a while before it pays off.

A legislative analysis shows the state won't break even on its investment for 25 years, Reuters reports.

Foxconn, which will make TV screens at the plant, has said it could employ as many as 13,000 by 2021, though its promises in other states have fallen short. And note that the long payback period is based on delivery of the full promise.

The projections in the report depend on Foxconn following through on several commitments, including an average annual salary of about $54,000, said Rob Reinhardt, a bureau program supervisor.

"Any cash-flow analysis that covers a period of nearly 30 years must be considered highly speculative," the report said.
A cautionary tale lies in this for Arkansas, which has recently expanded its already generous corporate welfare program.

Gov. Scott Walker says this is still a once in a lifetime deal. It was touted by Donald Trump, too, who's struck a few deals in his day where the payout proved problematic.

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