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Welcome to Illinois, Talgo :)
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<p>[quote user="blue streak 1"]</p> <p>Someone who has the knowledge needs to figure out how much income from these jobs will be earned??</p> <p>Then add in the multiplifier effects for other people getting jobs and then the revenue to the state that will come from all these additional jobs. Then we can let Wisconsin know how much they will loose in additional revenue??/ [/quote]</p> <p>To know the economic impact of a manufacturing plant, one would need to know the revenues that would be generated by the plant's sales, the purchases of materials and equipment for the plant, the wages and benefits paid to the workers, the number of workers, etc. There are a plethora of variables that would need to be factored into the accounting and finance model.</p> <p>One would also need to know the net income that would be generated for the plant's owners and the taxes that would be paid by the company. In many start-up situations new manufacturing plants pay no federal or state income taxes during the initial years for a variety of reasons, e.g. accelerated depreciation, grants, credits, etc. Moreover, if Illinois is like most states, the plant owner could be given local tax abatements, which means, amongst other things, it would pay no local property or inventory taxes for as long as ten years. </p> <p>Offsetting the wages earned by the employees, the sales generated from the building or renovation of the plant, the taxes paid by the employees and the plant owners, the multiplier effect, would be the operating subsidies required to support the rail services, tax abatements, credits, etc. In the long run, depending upon the train's operating and capital costs, tax abatements, etc., the net benefit to the state could be zero or negative. Thus, at the end of the day, Wisconsin may be a net winner by turning down the Talgos.</p> <p> </p>
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