State wouldn't break even on Foxconn incentives for 25 years
(AP) — It would take at least 25 years for Wisconsin taxpayers to break even on Gov. Scott Walker's incentives to lure Taiwanese electronics giant Foxconn to the state, according to a fiscal analysis released Tuesday.
Walker's bill would exempt construction materials from the state and local sales tax and hand the company up to $2.85 billion in tax credits based on the number on the number of jobs generated.
The nonpartisan Legislative Fiscal Bureau's analysis of the bill found that Walker's administration found the cost of the tax credits would exceed potential increased tax revenues by $1.04 billion at the end of fiscal year 2032-33.
What's more, borrowing for the interstate rebuild would leave the state on the hook for $408.3 million in interest and the sales tax exemption would cost the state $139 million.
Rep. Gordon Hintz, a Democratic member of the Legislature's finance committee, predicted the incentives bill would create long-term problems for every state budget for the next 15 years, ultimately resulting in cuts to important state programs.