Wednesday, June 06, 2012

Companies Run By Romney’s Private Equity Firm Received Millions In State And Local Government Subsidies


2012 GOP presidential nominee Mitt Romney has been campaigning hard against government spending, blasting “crony capitalism” and criticizing the Obama administration for providing economic development subsidies. Romney has blasted the “endless subsidies and credits intended to shape behavior in our economic society,” calling them “intrusion in the workings of the free marketplace itself.”
However, as Bloomberg News reported, the companies run by the private equity firm Bain Capital when Romney was its CEO had little problem accepting subsidies from state and local governments:
During Romney’s years as chief executive of Bain Capital LLC, companies owned by the firm received millions of dollars in benefits from a variety of state and local government economic development programs.
In California, taxpayer money built one Bain company a conveyor bridge between two of its buildings. New York City gave another Bain company tax breaks and lower energy bills to discourage it from moving to New Jersey. And in Indiana, a county government issued bonds to help buy new equipment for a Bain-owned steel plant — a business success featured in a Romney campaign ad touting his private sector prowess.
As ThinkProgress has reported, in his campaign ads, Romney has been citing the Steel Dynamics as an example of where his business acumen help turn around a company and create jobs. Steel Dynamics benefited from $37 million in subsidies from the state of Indiana.

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