“If recurring federal government shutdowns and debt crises teach us anything, it is that the words of career politicians, regardless of party, need to be examined with care: They need to be parsed. Debates among Badger State partisans over Wisconsin job trends and economic health, not to mention state budget and tax policy, have certainly required close examination.” Todd Berry, Wisconsin Taxpayer Alliance
Once again we see politicians trying to manipulate Wisconsin’s economy and taxpayers with a scheme to pick winners and losers in the economy.
“The path to jobs that matter is the free market.” Walter Block
Foxconn gets sweet tax deals and a pass on some regulations. What about all the Wisconsin companies, large and small, who have continued to try to make a profit, meet a payroll, pay corporate taxes, and comply with regulations? They don’t get special treatment. Wisconsin has lost employers and jobs because of that.
“In a free market, jobs are created by profit seeking businesses with access to capital. Unfortunately Government taxes and regulation diminish profits, and deficit spending and artificially low interest rates inhibit capital formation.” Peter Schiff
The so-called Wisconsin Economic Development Corporation isn’t revealing all the details but we do know that officials have promised hundreds of millions in tax goodies in this Foxconn deal. Beyond that, they are also promising rolling back environmental regulations, just for Foxconn. Now, if that rollback is not extended to everyone then that perk, too amounts to a form of redistribution of wealth...because complying with environmental regulations gets awfully costly.
The picking of winners and losers is part of a game in which the taxpayers will always lose. Libertarians believe that the State of Wisconsin's only proper role in “job creation” should be to foster a fertile environment for job growth, which is to say the following three action items:
- Cut state spending to ensure a balanced and responsible budget without accounting tricks;
- Reduce burdensome regulations in order to ensure a level playing field for all business; and
- Eliminate corporate taxes, to ensure a level playing field for all business. To entice business, they should start with statewide elimination of the corporate income tax.
Why aren’t the politicians doing this? Simple; if a repeal of the corporate income tax is passed, pouring thousands of dollars into Republicrat political campaign funds to ensure special perks would no longer necessary. Neither Scott Walker nor any of the other Republicrats who lined up to seal this deal are interested in losing their pay-to-play operation.
Follow the money.