Concerns Raised About Skyrocketing Bill for Wisconsin's Foxconn Deal

Governor Scott Walker and Foxconn Chair Terry Gou will sign a contract today that will pave the way for the Taiwan-based company to build a large manufacturing plant in Racine County.

1 minute read

December 22, 2017, 8:00 AM PST

By James Brasuell @CasualBrasuell


Milwaukee Alderman Bob Bauman has done the math: the state of Wisconsin has now made $4.1 billion promises to attract a $9 billion manufacturing plant operated by Taiwan-based Foxconn.

"When the state deal with Taiwanese company Foxconn was first announced, the numbers were bold and clear: the company would get $3 billion in subsidies from the state and in turn would build a $10 billion plant and create 13,000 jobs," writes Bruce Murphy. 

But as the state continues to negotiate the final 29-page contract, which Gov. Scott Walker and Foxconn's billionaire founder Terry Gou plan to sign the today, concerns are growing about the subsidy being offered by Wisconsin. According to a separate article by Jason Stein, the deal will become "the largest economic development deal in state history and the largest incentive package ever offered in the United States to a foreign company."

According to Murphy, "Ald. Bob Bauman tallied the total costs for taxpayers in a speech before a Common Council committee and concluded it would cost $4.5 billion. That might be a tad high, unless you believe the I-94 widening would have never happened. But even without it, the total cost is nearly $4.1 billion, to get a $ 9 billion plant. That’s astounding: a cost of $1,774 per household in Wisconsin."

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