Today, A123 Systems filed for bankruptcy, taking with it some $250 million of your money. Actually, now that I think of it, it was probably $250 million we borrowed from China, but you will have to pay it back. This company, just like Solyndra, was one of President Obama’s green energy pet projects.
The company made batteries for those widely popular electric vehicles.
The Waltham [Massachusetts] company’s decline was a result of the slower-than-expected adoption of hybrid and electric vehicles …
Gee, there is a surprise. You mean the federal government can’t simply throw money at an industry and somehow make it commercially viable? Who would have ever guessed that?
Since I’m on the subject of government waste, there is some interesting news in the Solyndra bankruptcy case…that’s the one where you, via President Obama’s “stimulus”, squandered $539 million on solar panels for which there was also “slower than expected” demand.
Here’s how this “scam” works. If a company has losses, it can carry those losses forward to another tax year where it can then off-set any profits with those “carried forward” losses, and thus reduce, or perhaps eliminate any profits, thus reducing or eliminating any federal tax liability.
Solyndra has not only tax loss carry forwards, but, $12 million in “solar tax credits” that could be used to offset profits…if it had any.
…Solyndra’s owners are asking the [bankruptcy] court to liquidate the rest of the business and contribute a net $6.7 million to pay off creditors for pennies on the dollar. A holding corporation will then emerge from Chapter 11 that won’t make products or employ workers, but it will get the Solyndra tax offsets.
This “emerging” holding company,
… is owned by Argonaut Ventures I LLC, Solyndra’s largest shareholder and the primary investment arm of the George Kaiser Family Foundation. Mr. Kaiser is a Tulsa oil billionaire who bundled campaign checks for Mr. Obama in 2008. [emphasis supplied]
Should this be approved by the bankruptcy court, Mr. Kaiser’s “holding company” could then merge with another company that is actually making money and which would otherwise be paying federal income taxes, but can now eliminate that tax “burden” by using Solyndra’s tax loss carry forwards, and Solyndra’s solar tax credits.
Bottom line…you loan $539 million to a company that stiffs you. Then, the owners of that company stiff you again by not paying federal income tax that they would otherwise owe on behalf of a profitable company, and that you would otherwise have used to make up for being stiffed in the first place.
Ain’t America great?