Foxconn, George Mason University, Wisconsin discussed on Jim Bohannon


Guest is senior research fellow and director of the equity initiative at the Mercatus center at George Mason University in Fairfax Virginia before we go any further what exactly does the equity initiative due. Well, what we do is we explore instances government, favoritism. So that's where the Foxconn deal came to light. There's a great deal of evidence that economic freedom is good for prosperity that lower taxes and fewer regulations. Those types of policies tend to be good for society. But what we find is that, you know, targeted tax breaks regulatory privileges. Those types of things that that sort of undermine economic freedom that raised the burdens on everybody else are often really driven by special interests who want some sort of government assistance. So our our project really aims to better understand the causes and consequences of this type of government, favoritism, and I gather that you would see the evidence as being that in most cases. The cost benefit analysis would shoot these down. Yes. That's right. That's right. Go ahead. Well, one thing I wanted to point out is, you know, there's a off as I was saying, you know, you could think about absent a subsidy to one firm you could lower everybody else's taxes. The there's an interesting political economy thing going on here though as well. So we knew spare particular firms from having to pay an an onerous tax. Then they no longer are advocates for for lowering that tax. So as I mentioned earlier, Wisconsin, actually spares all this is a relatively new policy for the last. I think about four years Wisconsin has spared all of its manufacturers from its corporate income tax rate. So while sixteen thousand firms have to pay a corporate income tax rate some three thousand firms don't because they're manufacturers. Well, those firms are no longer advocates for reducing the states corporate income tax rate, and so you actually find and there's there's recent evidence where some economists looked at the relationship between economic freedom and subsidies, and they found that states. That give out more subsidies actually, have lower levels of economic freedom, which is another way of saying they have higher taxes and more regulations on everybody else. One eight six six five O JIMBO our number one eight six six five zero five four six two six as we talk with the match you Matthew Mitchell of George Mason University. It could be argued I suppose that while you could use the same expenditure of money to lower overall tax rates, but that other people aren't offering a a ton of jobs such as at least in the beginning. Foxconn was offering in other words, it could I guess from from that perspective be argued that they're more worthy of a tax break because they're breaking in all these jobs. If in fact, they had in fact, you brought in.

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