Today I sent this letter to Senators Charles Grassley (R-IA) and Richard Blumenthal (D-CT):
We strongly urge you to re-introduce legislation similar to the Government Settlement Transparency Reform Act (S.1654) in the 113th Congress.
As you know, the death toll from General Motors’ failure to act on an ignition switch defect continues to climb, now at 87. Although GM's decision to create a fund to compensate victims and their families is a step in the right direction, we are troubled by GM’s ability to write off the cost as an expense for federal tax purposes.
If there were any doubts that the oft-used term "comprehensive immigration reform" is a stalking-horse for amnesty, a new Senate proposal unveiled yesterday should dispel them. The measure, touted as a way to fix our "broken" immigration system, will do the opposite. Not only will it demean U.S. citizenship and rule of law, it also likely will produce adverse economic effects. The main feature of the 844-page bill is that it would allow millions of illegal immigrants to apply for legal residency and eventual citizenship. Significantly, the bill bears a strong union influence. And labor officials aren't bashful about it. Ana Avendano, AFL-CIO director of immigration, declared last week: "Politicians know that if they stand in the way of citizenship we will steamroller them."
Thomas Perez embodies ethnic identity radicalism. Whether the U.S. Senate has the courage to challenge him is yet unknown. President Obama today nominated Perez for Secretary of Labor. As the Department of Justice's assistant attorney general for civil rights since October 2009, Perez has promoted a hard-charging egalitarianism that goes even beyond that of first-term Obama Labor Secretary Hilda Solis, who resigned in January. His "Third World First, America Last" worldview comes with hefty baggage. He's persuaded the Justice Department to dismiss its case against Black Panther members accused of menacing white voters and poll watchers in Philadelphia on Election Day 2008.
Stimulus déjà vu-lishness lurks: Another “green” tech company that received hundreds of millions of taxpayer dollars is financially troubled, seeks a buyer (or their preferred term – a “partner”), and China is ready to swoop in and buy up the remains on the cheap. And the same two Republican senators who slammed the last deal that went down like this are sickened again.
The authorization was the final major hurdle needed to complete the transaction. A123 had been granted $249 million to refurbish two plants in Michigan for battery production, another $30 million as a subcontractor for another stimulus-funded wind energy storage project, and various other grants and contracts by state and federal governments. But A123’s executives, while making sure their own bank accounts were well-taken care of, ran the company into the ground and now Wanxiang will reap whatever technology value is left, for cheap.
The past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.
The Chinese government, unsurprisingly, has approved a potential sale of stimulus-funded ($279 million-plus) A123 Systems to one of its own automobile parts manufacturers, should the Wanxiang Group’s bid be the highest this week for the bankrupt electric vehicle battery maker.
That was the easy part.
So far Republican Sens. Charles Grassley (Iowa) and John Thune (S.D.) have repeatedly raised questions and concerns about the possible transfer of A123’s business, jobs and technology from the U.S. – where taxpayers have thrown in approximately $132 million only to see many times that amount in losses since its 2009 initial public offering – to China. They’re no longer the only voices speaking out against the transaction.
A123 as a whole, or in pieces, is going to be sold to the court-approved buyer(s). That is likely to be either Johnson Controls, which is the lead bidder for the company’s automotive business, or Wanxiang Group, which wants to buy the whole company. A123 had an agreement to transfer up to 80 percent of the company’s ownership to the China-based automotive parts manufacturer over the summer, but its bankruptcy filing on Oct. 16 – with Johnson Controls as the new automotive assets purchaser – nullified its agreement with Wanxiang.
President Obama’s penchant for flushing taxpayer money down the green energy toilet lives at least another four years, and his crony supporters continue to benefit.
The latest example is the pending sell-off of assets by bankrupt A123 Systems, which was awarded upward of $279 million in stimulus funds, plus other assorted government grants and contracts. The top executives who presided over its failure – and supported the president’s cap-and-tax initiatives early in his term – are likely to receive millions of dollars in bonuses, thanks to their scheming earlier this year and a bankruptcy court judge.