Critics Ask: What’s The Financial Fallout If Foxconn Fails To Live Up To ‘The Hype’?

The Cap Times

By Lisa Speckhard Pasque

Since the announcement that Taiwan LCD manufacturer Foxconn will build a factory in Wisconsin, the news has been full of numbers: the potential number of jobs created, the billions Foxconn will invest and the billions in tax incentives.

Jon Peacock, director of the Wisconsin Budget Project, appeared on “Capital City Sunday,” and said he didn’t think the government would be able to recoup its investments, as there are not currently “enforceable clawbacks in place.”

Peacock also said he wanted to correct a misconception, and clarify that the tax credits would not offset corporate taxes, since two existing tax breaks in Wisconsin make it unlikely that Foxconn will have to pay any corporate income tax.

“These aren’t tax credits the way most people think of them, these will be annual checks to Foxconn,” Peacock said.

Read more here.