Mitt Romney has spent a surprisingly small amount of time on the campaign trail speaking about the infamous stimulus package and the millions in government spending it produced that literally went down the taxpayer drain.
Not only did failed solar panel manufacturer Solyndra benefit from a whooping $535 million government loan guarantee, it is actually now seeking a huge tax break as part of its bankruptcy reorganization.
As the Wall Street Journal said in an editorial last week, “Perhaps you thought the Solyndra scandal amounted to a $535 million government loan that will never be repaid, no such luck. In the latest twist, Solyndra's investors could be rewarded for their failure, thanks to a tax benefit the Administration handed out in a bid to evade political accountability.”
Yet Romney says nothing about this on the campaign trail? Why?
The Internal Revenue Service mightily objected to Solyndra's Chapter 11 reorganization plan when approached with the idea last week claiming their “... principal purpose is tax avoidance."
In actuality, the only “assets” the failed solar company has left are what the IRS terms "tax attributes." That would be $875 million to $975 million in net operating losses that could be used to reduce future taxable income by as much as $350 million.
This is “Hope and Change?” More like a taxpayer's nightmare brought on by a few investors utilizing the masses' money.
The very definition of failed socialism.
Carrying forward tax losses doesn't mean a profit in any way, shape or form. The WSJ writes, “So Solyndra's owners are asking the court to liquidate the rest of the business and contribute a net $6.7 million to pay off creditors for pennies on the dollar.”
How good for them and bad for American taxpayers.
What this will produce in the end result is a “holding company” that will rise from the bankruptcy. There will be no actual product, but would receive the tax benefits.
Who will that empty shell they call a corporation be?
It will be a virtual rogues gallery of private investors with close ties to President Obama and his campaign for re-election that began January 21, 2009.
One such investor/owner is Argonaut Ventures I, Solyndra's largest shareholder and primary investment arm of the George Kaiser Family Foundation. Mr. Kaiser himself is a Tulsa oil billionaire who bundled campaign checks for Mr. Obama in 2008.
Of course taxpayers had not idea of this devil's partnership between private enterprise and the White House two years ago when Solyndra was provided government loans.
Energy policy under Obama's Secretary of Energy Chu (“I'd give my performance an 'A'”) has turned into a major point of conflict between the president and his Republican challenger Mitt Romney. Yet a majority of Obama campaign ads geared toward Romney paint him as an evil capitalist spurred on in his greed by picking the bones of the American people.
Therein lies the massive hypocrisy of this “progressive” theme being tossed about like the God's truth to the American people.
Election Day is five days away.
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