More Fleecing of American Taxpayers

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Dow Chemical & Townsend Kokum have formed a joint venture to manufacture large batteries for use by cars and trucks in electrical propulsion

The Federal Government has put in 160 million American taxpayer dollars. The Michigan state government has also put in 160 million Michigan taxpayer dollars, through tax incentives. Total taxpayer funds are $320 million.

The plant will employ 320 persons. If we consider this is a creation of new jobs, each job creation will cost the American public $1 million. We can amortize that cost over 20 years at $50,000 per year.

If we assume that all 320 employees will be well-paid at $50,000 per year, including benefits, and adding the amortization, each active employee will cost the company $100,000 per year, of which half will be paid by taxpayers.

A senior analyst at Lux Research says that unless there is a real spike in gasoline prices, there will be an insufficient market to use all the produced batteries. This shows again that governmental authorities always move free easy with American taxpayer money.

However, the likelihood is that the federal government can and will increase gasoline prices to force conversion to electrical vehicles. This is being done by restrictions on oil drilling and hopeful passage of the Boogie Man tax, which some call Cap & Trade (carbon dioxide emissions). The Boogie Man tax will add large amounts of tax revenue to government coffers. It will not be recognized that it is only another form of American taxpayer fleecing.

Adding insult to injury, batteries require electricity, which is now produced primarily by coal-burning power plants, emitting carbon dioxide. The net result is that the energy source will be taxed to promote a project for which there is no need. What difference does it make whether carbon dioxide comes from the tailpipes of automotive vehicles or from the chimneys of coal-burning electric plants?