Thursday, September 02, 2010

Ron Johnson Business Got $4M in Government Aid

As always, guys like this love government hand outs when it's for them, but for regular people: nope.

Ron Johnson Business Got $4M in Special Aid - Local News - Milwaukee, WI - News -

The loans were part of a state-run program in which tax-free bonds are sold to investors, and the proceeds lent to a company at low interest rates. Pacur benefited from the program twice.


Tom said...

Well this is how big business works. On the outside, they say they hate government and want less of it. In reality, their hand is out, they are continually tapping government for tax free, low interest bonds/loans, cash grants, reduced taxes and even discounted land and buildings. Pitting one community, or state, against another is all the rage right now because they know communities are desperate for jobs. "South Dakota is willing to give me XYZ to build a headquarters there - what will YOU do to keep me here? West Allis has offered to sell me a parcel for $1 - what will YOU do for me?" In the end, it is normal everyday people who bear the burden of these incentives through their property tax payments. In the end, the rich get richer and middle class get poorer.

I think sometimes these incentives are a good thing in order to stimulate economic development. It's just hard to know when it is necessary versus "let's see what we can get".

It also troubles me that Ron Johnson wants to deny other businesses the same incentives he received now that he is big enough not to need them anymore. It sounds like he got these incentives early on and they helped his company succeed.

Kevin Scheunemann said...

Excuse me....

Did you see the list of elitist companies, including one of the richest law firms in WI, Jim Doyle was touting this week for helping to get federal government health care premium CORPORATE welfare for retirees!

When government hands out the money, its who you know and who you blow.

Motely Cow seems to want to make that system even bigger!

So the Motely Cow should be super critical of Doyle. Ron at least provided some middle class jobs, the law firm Jim Doyle got health care welfare for is full of elitist rich guys destroying middle class jobs with lawsuits.

Your disgust of corporate welfare is off center once again to the real problem...Democrats!

Mpeterson said...

Kevin's right, Tom. Corporate welfare is okay so long as it goes to corporations, but if it actually makes people's lives better, it's ... well, it's Democratic.

The real economic elitists are all those working people who don't have any money, not the oligarchs in the boardrooms on Wall Street. They're the real Americans., that was a pretty good imitation of Kevin.

alan markus said...

Let's see, if you read the article (which seems to contradict the headline)and apply some logic, you would know that the headline is a liberal media lie - I doubt Media Matters would look at it that way, though. To me, borrowing $4 Million dollars, paying that back + interest does not compute to "$4Million in Government Aid". The $$ Million comes from private investors, not the government. The only "aid" is the spread on the interest rate between market bonds and tax exempt bonds (the buyers of the bonds assume greater risk for a public purpose in exchange for no income tax on the interest that they earn). Is Feingold really that clueless? Good Grief!

You recently touted the River Bluffs project proposed for West Bend - I guess you are coming down on the side of the opposition to that project. Think about where the funding comes from - WHEDA funds come from the sale of tax-exempt revenue bonds & the allocation of Federal Income Tax Credits. Both have the net effect of reducing income tax revenue to the government to serve a different public purpose, in this case low income housing instead of building a community's industrial base.