RoJo: 'Oops, I stepped in it again' -- His firm got government loan | Wis.Community

RoJo: 'Oops, I stepped in it again' -- His firm got government loan

WKOW-TV in Madison continues to lead the way in investigative coverage of US Senate candidate Ron Johnson, who must wish he'd never done an interview with the station's Capitol bureau chief, Bob Schaper. The latest:

A company co-owned by U.S. Senate candidate Ron Johnson received a government-issued loan to expand its factory in the 1980s.

In an interview with 27 News on Aug. 17, Johnson railed against government subsidies for businesses and products.

"I'm in business," he said. "I have never lobbied for some special treatment or for a government payment."

He went on to say, "When you subsidize things…it doesn't work through the free market system very well."

According to a July 19, 1985, article published in the Oshkosh Northwestern, a $2.5 million industrial development revenue bond was approved by the Oshkosh Common Council on July 18, 1985. An article in the same newspaper, dated Feb. 16, 1986, said Pacur Inc., co-owned by Johnson, used the money to build a 40,000-square-foot addition.

Industrial development revenue bonds are issued by local governments to spur growth. Because the interest is normally tax-exempt, they are often repaid at below-market rates.

Ron Johnson’s website says: “Ron does not believe the federal government is capable of picking ‘winners and losers’ and should not remove capital from the private sector to create more government programs and jobs, which are unsustainable.” [Ronjohnsonforsenate.com]

“Government doesn’t create jobs – the private sector creates jobs.” [Ronjohnsonforsenate.com]

 

Published

August 25, 2010 - 5:49pm

Author

randomness