27.7.17

AVOIDING THE ILLINOIS PRIVILEGE TAX.

Taiwan's electronics firm Foxconn announces plans to build a new factory in Wisconsin.

It's all too much for the editorial writers at Chicago's Tribune.
Once again, the people of Illinois see how [state House speaker Michael] Madigan and [state senate president John] Cullerton, with their combined 86 years in Springfield, have left Illinois ill-prepared to compete for 21st-century jobs. Their agenda is about raising taxes, not about delivering those reforms. As we wrote a few days ago, every other state on Foxconn's short list looked better than Illinois by the basic measures of financial stability and pro-growth economies.
Illinois is what Democrats do, and Democrats would just as soon tax achievement as encourage it.

Now, it might be that Wisconsin is chasing jobs with tax benefits, and throwing tax benefits at factories will turn out as badly as throwing tax benefits at big-box stores and sports teams.  But the reason states engage in such behavior is that doing so might be a dominant strategy, and you look good when your strategy works.
We don't know details of whatever federal, state and local government incentives lured the company Beyond the Cheddar Curtain. And we can't be certain how many billions of dollars in investment, and how many thousands of jobs, Wisconsin will gain.

But we do know this: Wisconsin boasts a freshly burnished global image. One of the planet's largest tech firms, with a million workers worldwide, says its search led it to bet a fraction of its future on Wisconsin. Assuming that happens, expect robust economic growth from suppliers, subcontractors, construction companies and other businesses that will serve Foxconn and its workforce.
Some Wisconsin Democrats are throwing shade at the Foxconn deal, but their objections offer the Chicago-Springfield Combine little solace.  "Even the Democrats know they’re (accurately) viewed as anti-business when a news release starts with 'While I welcome new businesses to the state …'"

The likely location of the complex will be in Speaker Paul Ryan's district, likely in the Lake Michigan watershed.

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