Emerging Tech Fund Still Ineffective

With another company filing bankruptcy after receiving millions of taxpayer dollars from the Emerging Technology Fund, Texans have one more reason to call for the end of all the state’s corporate welfare programs.

Crony Capitalism

Terrabon, Inc, a Houston-based bioenergy producer, received $2.75 million in 2010 from the Texas Emerging Technology Fund. Now the Washington Post reports that company filed for bankruptcy in a Houston federal court in September.

That’s $2.75 million of taxpayer dollars down the drain, bringing the total amount lost by the Emerging Tech Fund up to $5 million.

Remember, this is the same fund that created only 820 jobs from 2006 to the beginning of this year. That came out to about $200,000 of tax dollars spent per job.

Not exactly a sterling record of success.

If the crony practices of the Emerging Tech Fund and the state’s other corporate welfare programs aren’t enough of a reason to eliminate them, this latest failed venture with taxpayer money should be one more nail in the coffin.

Only with free markets, low taxes, and a fair legal climate can we ensure the greatest levels of economic prosperity. It’s time for the legislature to end these slush funds once and for all.

Take Action

JoinGive
ABOUT THE AUTHOR

Dustin Matocha is the Executive Director of Empower Texans. Dustin graduated from the University of Texas at Austin with a BBA in Management, a BA in Government, and a minor in Marketing. He’s a self-described Corvette enthusiast, baseball purist, tech geek and growing connoisseur of local craft beer.

Read All Posts