Walker Shell Game: Pay a Company a Million to Move Three Miles North from IL, Create Zero Actual Jobs | WisCommunity

Walker Shell Game: Pay a Company a Million to Move Three Miles North from IL, Create Zero Actual Jobs

[img_assist|nid=471016|title=|desc=|link=none|align=left|width=300|height=208]One of the most absurd aspects of Scott Walker's failed job growth strategy is to throw huge sums of money at Illinois bordertown companies to move a mile or two up the street to Wisconsin.

The latest is Gurnee, Illinois manufacturer Kenall moving three miles north to Kenosha.

These types of moves look great in a photo-op, but they do nothing for the Wisconsin economy and won't add a single job.  Why? Because the same workers that worked in the Gurnee, Illinois location will be employed when they move three miles north to Kenosha.

The bottomline is if you currently live in Kenosha stateline area and are without a job, this move will do nothing to help your job prospects.  The stateline area you reside-in had Kenall Manufacturing yesterday and it will have it tommorrow, only in a new location.  The only thing that will change is that Kenall manufucturing will get at least a million dollars for moving a few miles north.  

Here's the kicker, though:  Because Wisconsin and Illinois have a tax reciprocity agreement, all income earned by an Illinois resident in Wisconsin is paid to Illinios (and vice versa), so nothing is gained income tax-wise from moving businesses a few miles north.  At the same time, however, thanks to the new corporate tax scheme set-up by Walker, Kenall will pay next to nothing in taxes, which overall means that Walker has done nothing for the stateline area, except take tax money out of schools and other public works and give it to a corporation.  

On the flipside, last year when Mitt Romney's Sensada decided to pack up and leave the bordertown of Freeport, Illinois and move to China, a lot of workers that live in nearby Wisconsin lost their jobs. That was a real change in the jobs numbers in the stateline area in general and Wisconsin in particular-- and Scott Walker, who was in a great position to put pressure on Romney, did nothing to prevent it.    


September 13, 2013 - 9:07am