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Tag: Ovianics

And Republicans Support This?

By JGillman, Section News
Posted on Thu Feb 23, 2012 at 10:58:01 AM EST
Tags: Michigan, MEDC, MEGA, Grants, Energy, Republicans, Upton, Hoogendyk, Solar, Picking Winners, Ovianics, Moral Authority, Taxpayer Abuse, Hypocrisy (all tags)

Well, its just time to break out the old cartoon again.

A Republican, Rick Snyder, is the father of the MEDC. It was his baby, and lest anyone forget, it was created under the Republican Engler administration. The MEDC, which has yet to produce a model that definitively demonstrates taking taxpayer funds, then giving those funds to hand picked "winners" produces net economic growth in our state. The MEDC which essentially could be called a taxpayer funded venture capital scam.

The MEDC's MEGA, The state of Michigan through Tax Breaks, and the DOE, which gave us that "success story" A123 systems.:

"When A123 Systems announced it was opening its lithium-ion battery manufacturing plant in Livonia in September 2010, then Gov. Jennifer Granholm wrote about it on the Huffington Post calling it "a Recovery Act success story."
But there have been troubles for A123 Systems in the 17 months since then despite a lot of state and federal aid to prop it up.
The state of Michigan gave it a $100 million MEGA tax credit that is contingent on the company creating 300 jobs by the end of 2016. A123 Systems also received another $41 million in tax breaks and subsidies from the state. The Department of Energy awarded A123 Systems a $249.1 million grant.
But the company has not been able to meet its own projections. For instance, on March 28, 2011 in an SEC filing, the company projected total revenue between $210 million to $225 million for 2011. Its latest report shows they had just $118 million of total revenue through the first three quarters of 2011 and reported a net loss of $172 million."

Yeah, that's a winner.

In fact doing so well, taxpayers should be happy to know that the top brass in the company thanks them for providing a generous raise.

But wait, I was talking about Republicans right? Right. - Below the fold.

(4 comments, 1158 words in story) Full Story