Two former Wisconsin Secretaries of Commerce, serving under both Republican and Democrat governors, opened Economics 201 over at WisOpinion with an explanation of how Industrial Revenue Bonds work. For those late to the party, that has become an issue in the Senate race because Pacur, which is owned by Republican front-runner Ron Johnson, utilized IRBs to expand its business. Let’s go to the bottom line:
Bottom line is IRBs are a smart financing tool for manufacturers considering construction, expansion and or the purchase of equipment, something that Ron Johnson and his company has been doing while providing more than one hundred and twenty jobs in Wisconsin for over 30 years. Taxpayers benefit from IRBs through new jobs in the community and additional tax base. There is no government guarantee and taxpayers have no risk in an IRB loan because private lenders and the company itself assume the risk.
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