Foxconn deal opens Pandora’s box

Sounds like we have opened a Pandora’s box. As we discussed yesterday, Foxconn is getting a sweetheart deal from Wisconsin taxpayers, collecting $200,000 in taxpayer subsidies for each job it creates at its new plant. That is about eight times as much in subsidies as the state provided other companies which got taxpayer money to create jobs. Some suggested the state should help existing Wisconsin companies with long traditions in Wisconsin. So in light of the news that Kimberly Clark is closing two plants and laying off 600 workers in Wisconsin’s Fox Valley, Governor Walker is ready to give “Foxconn terms” to keep them in the state. Walker tweeted he is willing to give the paper company the same deal the state gave Foxconn. Some say the governor’s offer is too little too late. Kimberly Clark never asked for an incentive package in order to retain jobs and its not at all clear it will influence the company’s decision. Are we going to give every Wisconsin company threatening to kill jobs our tax dollars? Walker sounds a bit like Oprah. You get a car! You get a car! And if we don’t give all Wisconsin companies planning to cut jobs “Foxconn terms” what does that say about how we value their contributions to our economy. Yes, it appears we have opened Pandora’s box, and its not clear we will ever be able to close the lid.