MADISON – Foxconn's $ 3 billion deal with Wisconsin taxpayers allows the Taiwanese tech giants to receive tax credits each year as the company creates hundreds of jobs every year – a goal that, according to Tony Evers, "is too expansive " be.
Evers and Foxconn representatives are in talks to rewrite a contract that sets out Foxconn's investment in Wisconsin to receive subsidies funded by taxpayers ̵
"Perhaps these goals are too far-reaching," Evers said on Sunday at WKOW's Capital City Sunday. "Whether it's 1,300 jobs or 13,000 jobs, every governor of the state, including myself, wants him to succeed and create as many jobs as possible."
In 2018, the company had to create 260 jobs in order to receive any tax credits – a goal they could not achieve with 82 jobs. The number of jobs that the company needs to create to continue lending is growing by hundreds each year.
Evers said because Foxconn in Wisconsin had "changed its footprint". "We need to look at how we can all benefit from it" But it is still too early to say what specific changes could be made.
Evers Sonntag's comments provide the first clue as to what potential changes to the state's contract with Foxconn could be made.
The company has said in recent months It will build a smaller manufacturing facility in Racine County than was originally planned when former Governor Scott Walker made a deal with the company in 2017 for 13,000 jobs and a $ 10 billion facility Dollar mediated.
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FULL COVER: Foxconn in Wisconsin
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Evers said last week he did not believe the company's plans would lead to many jobs in and wanted to change the contract to accommodate less-anticipated positions.
It is unclear whether officials from the Evers Administration and the Wisconsin Economic Development Corp. Consider also a reduction in the percentage of wages and capital investment of the state taxpayer when the project scope is withdrawn.
An Evers spokeswoman was not immediately available to answer questions.
The provisions on repayment of payments protect state taxpayers if Foxconn does not create jobs and investment, but the payments the company has to earn if it keeps its promises are generous compared to the incentives packages, the others Companies have received from the state.
If government incentive agreements with companies usually have taxpayers for 7% of salaries, Foxconn would receive 17%. Foxconn would also repay 15% of its capital investment instead of the usual 10%.
Evers said: "It is premature to talk about how we will get there, but the fact is that they have made a business decision, and we are working with them, and discussions are being considered to that
Of the $ 3 billion government incentives Foxconn can receive, Foxconn currently has to create 13,000 full-time equivalents, averaging $ 53,875 a year, and receiving $ 1.5 billion in loans.
Foxconn has the right to receive $ 150 million in sales tax exempted from purchases made by Foxconn in Wisconsin, and could receive $ 1.35 billion in additional loans worth $ 9 billion Dollars invested in its complex in Mount Pleasant.
That is, if Foxconn owes no taxes, it will still receive the money. Since Wisconsin waives almost all taxes on production gains in the state, it is likely that the loans from Foxconn are in the form of cash payments.
Meeting Speaker Robin Vos, R-Rochester, in a separate appearance on "Capital City Sunday" on Sunday. Foxconn becomes part of Wisconsin's "ecosystem" and believes that Foxconn will continue to create 13,000 jobs as the company continues to hold on to that number.
Vos, representing the Assembly District where Foxconn builds its first new building US American manufacturing campus said it had believed Evers had undermined the contract with Foxconn last week after Evers said it wanted to renegotiate the contract. "I can not believe that a governor of Wisconsin was responsible for the failure of the largest Economic development in the history of our state is responsible, "Vos said in an interview over WISN on Thursday.
But Evers said The administration's officials are working with the Foxconn officials on possible changes.
" We're working directly with Foxconn together – this is not an Evers call to Foxconn. This is the job of Foxconn, WEDC, and Evers, who are finding the best company and for the state of Wisconsin, "said Evers.
A spokeswoman for Vos and a spokesman for Senate Majority Leader Scott Fitzgerald, who also Evers & # 39; Comments on a possible amendment to the Foxconn Treaty were not immediately available on Sunday.19659003] Rick Romell of the Milwaukee Journal Sentinel contributed to this report.
Contact Molly Beck in the Capitol office at (608) 258-2263 or email@example.com Follow her on Twitter at @MollyBeck .
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