Evers Administration Reneges on Foxconn Deal

So much for any other large business trusting the WEDC in a deal.

(The Center Square) – The state of Wisconsin is continuing to take a hard line on Foxconn and the billions of dollars in state tax credits the company thought it was receiving.

The Wisconsin Economic Development Corporation said in a letter Monday Foxconn will not get any tax credits for it’s being-built plant in Mt. Pleasant until the company agrees to a new contract with the state.

“Foxconn’s activities and investments in Wisconsin to date are not eligible for credit,” WEDC Secretary Missy Hughes said in the letter.

Hughes said Foxconn’s decision to shrink the size of its plant led to WEDC’s decision to refuse the company tax breaks.

Foxconn’s deal, signed under Gov. Scott Walker, promised up to $3 billion if Foxconn met its jobs and construction goals.

Foxconn has fallen short of all of those goals, but the company said it had hired enough people by the end of 2019 to qualify for some tax incentives.

Hughes, in her letter, said that is not enough. She wants either a new contract, or she said Wisconsin could take back some of the money already paid to Foxconn.

The State of Wisconsin made a deal with Foxconn. If Foxconn doesn’t live up to their side, then don’t give them the tax breaks. But to withhold those tax breaks to force a new deal is just scummy. If I were Foxconn, I’d walk. Why bother making another deal with a state that welched on the first one? Rerun the math and see if it still makes sense to keep building in Wisconsin.

54 Responses to Evers Administration Reneges on Foxconn Deal

  1. Pat says:

    Is Wisconsin reneging on a deal or has the deal changed because Foxconn’s business plan changed from what was originally negotiated with the state? If it’s the latter, renegotiating would appear to be proper.

  2. Kevin Scheunemann says:

    Leave it to liberals to derail prosperity.

  3. Mar says:

    Never trust a liberal.

  4. Le Roi du Nord says:

    Ah, Foxconn, the alleged 8th wonder of the world, fails to live up to a contract and you claim the the State “reneges”. An amazing disconnect from reality. walkercon has cost the state a bunch of $$, and will get worse as times goes on unless somebody makes them toe the line. Since vos and fitz have been in hiding since April somebody had to be a leader on this conservative mess.

  5. jjf says:

    Seeing that WisconsinRightNow (motto “In Valor There Is Hope”) wasn’t brave enough to link to the actual letter, if you read their version you wouldn’t see:

    Dear Dr. Lee:

    Over the course of the last year, the Wisconsin Economic Development Corporation (WEDC) and I have worked with you and Foxconn with a goal of crafting a new agreement that aligns with your company’s plans for development in Wisconsin, because Foxconn was not building a Gen 10.5 facility upon which the agreement with WEDC was predicated.

    As you know, we have not reached such an agreement, and therefore the purpose of this letter is to inform you that Foxconn’s activities and investments in Wisconsin to date are not eligible for credit under the Electronics and Information Technology Manufacturing Zone Tax Credit Agreement dated November 10, 2017. Enclosed please find WEDC’s Verification Letter and Forms, and a thorough description of the basis of this determination, per the agreement.

    Continuing to re-negotiate a deal that your private industry partner has broken, that’s “scummy”?  Tell us why the state shouldn’t have “walked.”

    Also, most dictionaries now mark “welched” and “welshed” as offensive and to be avoided.

  6. Jason says:

    >Also, most dictionaries now mark “welched” and “welshed” as offensive and to be avoided.

    Incredibly ironic that you write shit like this all the time… trying to educate us all on your lilly-white PC cancel culture, while you’re the guy who was the owner – operator of a blog that was nothing more than an way for you to insult and mock this one.

    I think that really falls right into Leroy’s statement yesterday of “Interesting Double Standards”.

  7. Owen Owen says:

    I’m fairly sure that as a person of Welsh descent, I’m allowed to continue the use of the word. I think that’s how our cancel culture is working now.

  8. jjf says:

    Which parodies have you enjoyed over the years, Jason?  Which parodies made you angry?  When you insult and mock and dox, what is your intent and goal?  Have you ever created something that you showed to the public?  Was there any criticism of it, and how did you respond?

  9. jjf says:

    Fairly sure?  You mean, you looked and found someone who said it was OK, and ignored the bunch who said it wasn’t?

    As for Foxconn, do you think they “lived up to their side” of the bargain?  When you looked for that, did you find any supporting evidence that WEDC missed?

  10. Jason says:

    >When you insult and mock and dox, what is your intent and goal?

    It’s a parody.  Tell us where on the doll it’s hurt you.  Tell us that don’t mock and insult here and in the recent past.

  11. Jason says:

    >and ignored the bunch who said it wasn’t?

    What bunch is that?  Surely if you’re calling Owen out on it, you have an easy reference to those people that were offended by Owen’s phrase?    You’ve handed them the doll and they’ve pointed to where they were each hurt by it?

  12. Mar says:

    You know, Jason, those Welsh mobs of thugs that riot and loot when someone uses that word.
    Owen better watch out because jjf might lead a bunch of Welsh thugs to Owen’s home in the middle of the night to peacefully protest by rioting, looting, using vile language towards him and his family.

  13. Owen Owen says:

    As a Welsh-American, I don’t need anyone else to give me permission to disparage my own heritage. Are you anti-Welshite, jjf? Do you deny me the right to comment on my own bloodline?

    See how ridiculous this is? Probably not… but the rest of us do.

  14. dad29 says:

    With all that said, it remains a mystery as to why the State denied the tax-credits–other than some vague language that Foxconn has not met…..blah blah blah.

    Wouldn’t surprise me if the Chinese Lung-Rot had something to do with slowing the investment here.

  15. jjf says:

    Jason, being the IT savant you are, I’m sure you could think of phrases to enter into Google to find your answer.

    So why did you cross out “dox”?  Don’t want to discuss your intent?

  16. jjf says:

    Dad29, you think the “Enclosed please find WEDC’s Verification Letter and Forms, and a thorough description of the basis of this determination, per the agreement” is vague?  Based on what?

    Owen, as for your use of the word, I can only point at the rest of the world’s discouragement of the use of the term.  Self-hatred’s a thing.

  17. Jason says:

    > I’m sure you could think of phrases to enter into Google to find your answer.

    Then I’d be accused of using search terms to only confirm my bias.  Right?  Neat little box you try to wrap everyone else into… it’s almost like a mental retardation you have…

    >So why did you cross out “dox”? 

    Because we’ve settled many times now that I haven’t “doxxed” you.

    >Don’t want to discuss your intent?

    What was your intent with your blog?  What is your intent coming here day after day?  It’s not to educate us, how many times have you implied that you can’t stand us?  How many times have you insulted us?  What’s your intent John Foust?  As a man getting into your late 50’s, I’d think you would act a little more mature.

  18. Mar says:

    “, I can only point at the rest of the world’s discouragement of the use of the term.”
    Still waiting to see the world’s outrage of the term Welsh.
    I’m sure it’s out there somewhere.
    Not just 1 person’s outrage, I want to see the world’s outrage.
    So, come jjf, show us the outrage.

  19. Mar says:

    The problem with what Evers did is that big businesses now may be reluctant to move to Wisconsin because they cannot trust Wisconsin government leaders to uphold their part of a bargain, whether the government is right or not.
    Just as Evers was bound by Scott Walker’s agreement, the next governor will be bound by Evers agreements, whether they like it or not.

  20. jjf says:

    My intent is to educate you, Jason.  And sometimes make you laugh.  Your conversations with me would be so much more fulfilling if you behaved yourself.

  21. Jason says:

    >My intent is to educate you, Jason.  And sometimes make you laugh. 

    If you think you can educate me in anything that will improve my life, you just made me laugh.

    >Your conversations with me would be so much more fulfilling if you behaved yourself.

    Oh don’t worry, I’m very happy with our conversations.

  22. jjf says:

    Mar, any contract has two sides.  Foxconn didn’t come close to meeting their obligations.  That happened first.

  23. Le Roi du Nord says:

    “because they cannot trust Wisconsin government leaders to uphold their part of a bargain, whether the government is right or not.”

    Did you really mean to say that?  Don’t you want the state to be responsible caretakers of the taxpayers $$ ?

  24. Mar says:

    jjf, you’re a small business person or even an hourly employee.
    You start a project but cannot completely finish it for whatever reason, besides fraud.
    Shouldn’t you be paid for the work that you have already done?

  25. jonnyv says:

    Mar, not sure what you mean by that last comment? Many agreements are paid in full upon completion.

    My understanding is that Foxconn didn’t meet their employee requirements based on the contract agreement and they changed what their plant was scheduled to produce.

    This statement “The problem with what Evers did is that big businesses now may be reluctant to move to Wisconsin because they cannot trust Wisconsin government leaders to uphold their part of a bargain, whether the government is right or not.” sounds silly to me. It sounds like you think that gov’t should pay up for FEAR of not getting future business whether Foxconn has met their obligations.

    If Foxconn was in the right, I would assume we would have seen a lawsuit. Maybe I honestly missed something, but I don’t think I saw one.

    Many people warned Walker about something like this with Foxconn. He went ahead with what he probably felt was right. Can’t really blame him for that. BUT, this is his boondoggle. Has he made any statement on what is happening? I haven’t heard.

  26. Mar says:

    I haven’t not seen or heard Scott Walker in any media since he left office. Does he still exist.
    As far the payments, if it was all or nothing in incentives, then Foxconn loses, but if there were increments, I can see a lawsuit or arbitration on the horizon.

  27. Le Roi du Nord says:

    There were incremental milestones in the contract, foxconn didn’t meet even those.

    Maybe this will help”

    https://urbanmilwaukee.com/2020/10/12/back-in-the-news-foxconn-wont-get-state-tax-credits/

  28. Tuerqas says:

    Jjf:  Fairly sure?  You mean, you looked and found someone who said it was OK, and ignored the bunch who said it wasn’t?

    Mirriam Webster makes their own judgments, they don’t poll any people other than their liberal agenda creators.  That is your only ‘bunch’ who has said the word Welsh should not be used as a verb.  The cons above are right jjf.  I think you should be showing proof of the masses (5 people can be a bunch) disapproving of the term (or at least the Welsh masses).  African American comedians make fun of their race with terminology that would get a white person banned from ever working in the comedy field again, but I do not see any liberal bunches condemning those comedians and we all know why.  Blacks are a liberally protected species under liberal dogma (or should I say doggerel).  I guess the Welsh aren’t, Owen, sorry.  The liberal PC double standard strikes again.

  29. Tuerqas says:

    “because they cannot trust Wisconsin government leaders to uphold their part of a bargain, whether the government is right or not.”
    Did you really mean to say that?  Don’t you want the state to be responsible caretakers of the taxpayers $$ ?

    The whole southern corridor of I94 was done on our dime as a Foxconn requirement as well as several other ‘expenses’.  I think we are past responsible caretaking and into damage control.

    Foxconn reps said they had earned some level of tax break according to the original agreement, but it is disputable so yes, negotiation and/or litigation seems appropriate.  Also, the agreement was contingent on the State putting up a ton of money first.  I would agree that a new contract should be made that requires some quid pro quo or that balances an agreement with the newest Foxconn plans and what the State has already provided.

  30. dad29 says:

    The whole southern corridor of I94 was done

    Whether or not at FoxConn’s request, that work has attracted quite a few new large warehouses and manufacturing buildings–including 2 Amazon facilities in Racine County and one coming soon in Oak Creek.

    This is not a one-sided story at all.

  31. MjM says:

    Tuergas claims: “The whole southern corridor of I94 was done on our dime as a Foxconn requirement”

    You mean the project that had it’s start in a study begun in 2000, 11years years before Walker became governor? You mean the project that began construction in 2009, two years before Walker was became governor?
    You mean the project that was 1/3 done three years before the Foxconn deal as inked?

  32. Mar says:

    So, jjf admits he is a troll.
    “My intent is to educate you, Jason.  And sometimes make you laugh”
    And yet, jjf, you are not funny.

  33. Tuerqas says:

    You mean the project that had it’s start in a study begun in 2000, 11years years before Walker became governor? You mean the project that began construction in 2009, two years before Walker was became governor?You mean the project that was 1/3 done three years before the Foxconn deal as inked?

    Granted, I should not have used the ‘whole’ nor said that Foxconn was the progenitor reason for the project.  The Foxconn actual portion was a piddling 134 million.  That said, yes, I meant the project that had been significantly underfunded and had no chance of coming near its goal of starting in 2009 and finishing in 2016 according to the original plan of which you speak.  In fact, the funding spike did not happen until after the agreement had been made and included a required finish date of (I believe) 2020 in the Foxconn deal.  Also yes, we have reaped other business benefits because of the corridor improvement, which was the reason for the plan being conceived in the first place.  And it would have been finished at some point without Foxconn, I believe the last estimate before the Foxconn deal was 2025-2026.  So should we what, applaud Foxconn for getting our state government to get its butt in gear on the corridor and just ignore the 134 million extra they cost us, or maybe take some of it out of the tax breaks promised them after vastly shrinking the deal to which they agreed?

  34. Le Roi du Nord says:

    Nobody mentioned the $90 million taken from the state local roads account that would have been spent on local roads all over the state.

  35. dad29 says:

    Just raise your taxes, LeeeeeeeeeeeeeRoy.  Works for every other municipality.

  36. Le Roi du Nord says:

    Never been involved in local government, eh dud?

  37. Tuerqas says:

    Nobody mentioned the $90 million taken from the state local roads account that would have been spent on local roads all over the state.

    For fans of sub-text, that is exactly what I mentioned.  The north-south I-94 corridor was not receiving significant funding until the Foxconn deal was signed.  Then money was shifted to fund the corridor project.  There are many un or underfunded state projects that have been approved by Government for building or improvement.  Most projects that suddenly get priority funding didn’t get it from raised taxes, they got it from re-allocations in the current budget.  Someone wins, someone loses.

  38. jonnyv says:

    https://www.theverge.com/21507966/foxconn-empty-factories-wisconsin-jobs-loophole-trump

    Interesting piece just release on The Verge about this Foxconn debacle.

  39. Mar says:

    jonny, interesting article, if it is true.
    Some questions: Certainly Foxconn has lost money, even with state subsidies, so go through the charades?
    If these employees had nothing to do, then why all bitterness and supposed abuse?
    It seems a bit of stretch that they had absolutely no business plan and were desperate to find one.

  40. dad29 says:

    Never been involved in local government, eh dud?

    Nope.  But the fact that you are is your own damn fault.  Too bad, eh?  Now, instead of taking MY money to fix YOUR damn gravel trail, you’ll have to tax YOUR people.

    Awwww.

  41. Le Roi du Nord says:

    Well, at least I shown some civic responsibility, while you proclaim your ignorance for all to see.

    Local governments can’t just raise taxes on a whim.  Armchair quarterbacks like you can’t be bothered to actually know stuff like that.

    And a portion of that $90M was gas tax money that my people paid in, and it is distributed back to the locals for use on local roads.  But you don’t need to know that either when it is easier to just whine about stuff you won’t take the time to understand.

    Carry on.

  42. Mar says:

    So, sociopath, prove you were a member of local government.
    You lie so much, I highly doubt it.
    And actually, local governments can raise taxes on a whim. They can raise the mill rate, the tax accessories can raise property values, the cops can pull more people over and give tickets.
    Clearly. You have never served in public office.
    If so, prove it.

  43. dad29 says:

    It seems a bit of stretch that they had absolutely no business plan and were desperate to find one.

    Yes, it does.  If the article is accurate (and there’s nothing to say otherwise), then either Gou is a nutbag/professional bullshitter or something very serious happened on the home-front which derailed this thing.

    Thing about nutbag professional bullshitters is this:  it is VERY easy to believe them.

  44. Le Roi du Nord says:

    No lies, mar.  Was on the town board, still on the county board.

    Maybe in AZ, but not in WI. You are clueless as usual.

  45. Mar says:

    Prove it, sociopath. Which county?
    You have nothing.

  46. Le Roi du Nord says:

    Nope, I’m not telling you were I live.  Crazies like you and your ilk would make an attempt (based on their collective IQ and organizational skills no doubt unsuccessfully) to kidnap me.  If you don’t believe me, fine, remain ignorant.  Change is difficult for folks like you.

  47. Mar says:

    You’re lying again, sociopath.
    No proof equals it does not exist.
    Just like you tell Kevin.
    You have nothing.

  48. Le Roi du Nord says:

    Wrong again, mar.  I get a per diem from the county.  And by the way, you were the one that claimed I wasn’t an elected official.  Burden of proof is on you.

  49. Mar says:

    So you are not a county board member.,you admit.
    Too bad you are such a lying sociopath. I might have believed you if you weren’t.

  50. Le Roi du Nord says:

    No mar, I said no such thing, you are wrong yet again.  I get a per diem because I am on the county board.

  51. Mar says:

    You could a per diem for cleaning dog poop from the county courthouse.

  52. Paul says:

    Le Roi du Nord is a white supremacist child molester. Burden is on him to disprove these facts.

  53. Mar says:

    Well, Paul is right that Le Roi is a racist.
    And because Le Roi is a sociopathic liar, if he denied the other accusation,who would believe him without scientific fact?

  54. Mar says:

    Kind of sucks to be a sociopathic liar, doesn’t it Le Roi.
    Here you might have one of your best accomplishments in your life, something to be proud, and no one believes you.
    As for finding out who you are, you have left enough clues to figure out who you are. But that’s something I don’t do.

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