Donald Trump, Scott Walker and Robin Vos’s massive corporate welfare giveaway is officially a bust:
Taiwan electronics manufacturer Foxconn is drastically scaling back a planned $10 billion factory in Wisconsin, confirming its retreat from a project that former U.S. President Donald Trump once called “the eighth wonder of the world.”
Under a deal with the state of Wisconsin announced on Tuesday, Foxconn will reduce its planned investment to $672 million from $10 billion and cut the number of new jobs to 1,454 from 13,000.
The Foxconn-Wisconsin deal was first announced to great fanfare at the White House in July 2017, with Trump boasting of it as an example of how his “America first” agenda could revive U.S. tech manufacturing.
For Foxconn, the investment promise was an opportunity for its charismatic founder and then-chairman, Terry Gou, to build goodwill at a moment when Trump’s trade policies threatened the company’s cash cow: building Apple Inc’s iPhones in China for export to America.
Wisconsin Governor Tony Evers said the new agreement will save Wisconsin taxpayers “a total of $2.77 billion compared to the previous contract, maintain accountability measures requiring job creation to receive incentives, and protect hundreds of millions of dollars in local and state infrastructure investments made in support of the project.”
Evers said under the deal negotiated between the Wisconsin Economic Development Corporation and Foxconn, the Taiwan company is eligible to receive up to $80 million in performance-based tax credits over six years if it meets employment and capital investment targets. He stressed that the incentives were in line with those available to any company.
The state will reduce the tax credits authorized for the project to $80 million from $2.85 billion.
Having democratic elections for governor seems to be working out pretty well for Wisconsin, they should try it for the state legislature too.