To Tariff, or not to Tariff: That is the Question

There is such a demand for renewable energy that two foreign owned companies are laying off workers.  Even a tax credit worth $84 million couldn’t help this pie-in the-sky fantasy.  The Heritage Foundation reported the following:

A pair of foreign-owned solar companies that benefited from a combined $84 million in Energy Department tax credits have announced they will lay off employees.

One of the companies, German-owned SolarWorld, was integral in the fight for tariffs against the importation of Chinese photovoltaic solar panels. The other, Chinese company SunTech, blamed those tariffs for its own layoffs.

Both companies benefited from the Energy Department’s stimulus-funded Advanced Energy Manufacturing (48C) Tax Credit. The 48C credit is worth up to 30% of the cost of manufacturing qualifying green energy projects.

SolarWorld received a credit worth $82 million, while SunTech’s was worth $2.1 million.

Both companies announced this week that they will shed some employees. SolarWorld, which announced a 47% revenue decline in the third quarter, blamed a potential 37 layoffs at its Oregon plant on “illegal” Chinese trade practices.

SunTech said the U.S. International Trade Commission’s 35.95% tariff on Chinese solar panels was partially responsible for the 50 impending layoffs at its Arizona production facilities.

To tariff, or not to tariff: that is the question.  I have a better one: why don’t we let the market place determine the worth of these companies?

Just think, we have four more years of these incompetent boobs running the country.  Isn’t that comforting?

Source: http://blog.heritage.org/2012/11/16/two-more-stimulus-backed-solar-companies-announce-layoffs/