Foxconn Factory Tax Breaks: Wisconsin Democrats Argue Against Bill

MADISON, WI — When President Trump announced along with Gov. Scott Walker that Foxconn Technology Group, a multinational manufacturer, would be bringing thousands of jobs to Wisconsin, that promise came with a $3 billion price tag — and that cost has sparked contention in the state Assembly.

To attract the major employer, the state will have to give it a special tax break. The tax bill was scheduled for a vote Thursday, but Democratic lawmakers argued to slow down and delay the legislation until it can be improved. Republicans say they are not moving too quickly on a bill.

Democratic Assembly Leader Peter Barca argued Thursday that changes are necessary to ensure the environment and workers are protected and Wisconsin businesses will be involved in construction of the $10 billion campus where television display panels are to be manufactured. Democratic critics have said the state is giving away too much, while Republican backers, including Gov. Scott Walker, say it's a once-in-a-lifetime opportunity. (For more information on this and other political stories, subscribe to the Madison Patch to receive daily newsletters and breaking news alerts.)

The incentive package up for a vote would be the largest in state history and the biggest to a foreign company in U.S. history.

A deal signed by Walker and Foxconn officials call for the electronics giant to invest $10 billion in the state and hire up to 13,000 people at the massive plant. Construction would begin in 2020.

Republican Assembly Speaker Robin Vos says it is important for the proposal to pass with bipartisan support. He says the project that could employ up to 13,000 people will transform the state's economy.

Republicans control the Assembly 64 to 35.

The state Assembly scheduled a vote on the measure Thursday, just three weeks after it was introduced. Assembly jobs and economy committee chairman Rep. Adam Neylon says the bill has been improved to include changes Democrats wanted, including $20 million for job training and improved environmental regulations.

Republican Assembly Speaker Robin Vos predicted the bill would pass on a bipartisan vote. Many minority Democrats have been outspoken against the measure.

The bill must also pass the Senate and be signed by Gov. Scott Walker before becoming law.

AP Photo/Kin Cheung, File