- Jan 8, 2001
Well, states have the right to make these deals. They often seem to be a bad deal in terms of cost to benefit ratio - but politicians are under allot of pressure to bring jobs into their respective states. (although many do ultimately bear fruit, so long as they don't just jump ship for added incentives in other states). Companies know this and, of course, take advantage of it. I don't know of any reasonable law that can be written at a federal level that would help the situation without violating states rights. So yeah, stuck here due to the unflinching lack of ethics among the top ranks of multi-national companies and the state's demand for enhanced job opportunities.Oh I agree that it is the way of the country right now, but it is a bad thing for the country. In Wisconsin, for the Foxconn project the government has already spent ~$200 million for land (pushing people out of their homes and farms), $185 million for water and sewers, $342 million for roads, all for a planned 1454 jobs (scaled back from the original promises of 13,000 jobs). That adds up to $500,000 of our tax money per planned job created. But as of 2020, only 281 jobs were actually created, making this $2.5 million per job so far.
The only way to stop it will never happen, but the federal government would have to tax the businesses at 100% of the subsidies they get, and then lower personal income taxes an equivalent amount (so this is revenue neutral). Then businesses would base their decisions mostly on the right location for their work. It won't happen, but it would stop this ridiculous abuse of our money.
Sorry to make this thread political.