Foxconn bests Amazon in incentives for fewer, lower-paying jobs
While e-commerce giant Amazon has come under fire for the massive tax breaks it will enjoy in New York and Virginia – the locations chosen for its new headquarters – its incentives packages are collectively less than what was given to Apple supplier Foxconn.
The Taiwanese technology giant is slated to build a $10 billion factory in Wisconsin, for which it will receive more than $4 billion worth of total incentives to directly create 13,000 jobs with an average salary of $53,000. In addition to the $3 billion incentives package put together by lawmakers, the state added in some extra spending – $764 million in local government incentives and $134 million to fix public infrastructure.
Foxconn said its investment will spur the creation of 22,000 indirect jobs.
The sizable package was created despite concerns at the time about whether Foxconn would follow through on its promise after it pledged to build a $30 million factory in Pennsylvania in 2013 that never materialized.
Meanwhile, Amazon – which is expected to create 50,000 jobs with an average salary of $150,000 across Arlington, Virginia, and Long Island City, New York – will receive about $1.525 billion in performance-based incentives from New York and $573 million in direct performance based incentives in Virginia. It will only receive those benefits if it meets certain job creation goals. Arlington and Virginia also pledged another collective $223 million toward infrastructure investments. Combined, that’s about $2.3 billion.
Even when adding in Amazon’s incentives to build an Operations Center of Excellence in Nashville – that’s only about $2.4 billion, as first reported by The Washington Post.
Amazon has said its investment will create tens of thousands of indirect positions in New York alone.
Wisconsin brokered its deal with Foxconn last year, which was hailed as a major political and economic success by President Donald Trump and Wisconsin state lawmakers – including Republican Rep. Scott Walker. Foxconn is expected to build a 20-million square foot facility to manufacture liquid crystal display panels.
In addition to creating fewer, lower-paying positions, reports surfaced this month that Foxconn was bringing in personnel from China as it struggles to find qualified workers. Taxpayers will be on the hook for 40 percent of the public bonds that finance the package if it falls through, according to The Wall Street Journal. It would take about 25 years for taxpayers to see return on the Foxconn investment.
