The Ati-thesis , Marxism


"By that definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production.[3] Friedrich Engels, in Socialism: Utopian and Scientific, argues that state capitalism would be the final stage of capitalism consisting of ownership and management of large-scale production and communication by the bourgeois state.[4]"

Quoted from Wikepedia

Friday, February 20, 2015

Mayor LePage on Baldacci Reducing Funding To Municipalities

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As Governor, LePage seems on track to implement the Steve Woods plan of nudging the inhabitants of rural towns to move into urban centers.

Steve Woods was then the would be CEO of the corporate state. In the video Mr Woods explains that the inhabitants of 108 Maine Towns are not serving the corporation as they should be. Mr Woods says the 108 municipalities of Maine are costing the  corporation five times as much as the corporations recieves from these instrumentalities in sales tax revenue.

Mr Woods speaks as a man managing a corporation not as a would be Governor of a state. He speaks in calm Obamaesque tones signaling that we can surely trust this erudite man so pro-active for the cause of state corporatism. The corporate state replaced Maine's constitution back in 1976 when Governor Longely called in the heads of Maine industry to restructure Maine as corporation, kicking the old fashioned Maine constitution out of the way as they did so. Maine was going to re-invent itself- the government would serve not as representatives of the lowly inhabitants of the state but as a player on the global  stage advancing the cause of an unrelenting ubiquitous megalopolis.

In the old days when Maine was a state, the Governor might be concerned with how the state might better serve the interests of the inhabitants of these towns but in the new globalist corporation of Maine, the CEO's of the corporation- such as  Lepage have better plans- Can we use a bulldozer to remove these inhabitants who are not properly serving as instrumentalities of the state corporation? NO- but abruptly removing municipal revenue sharing might do the trick !

 Mr Wood's fuzzy math forgot to factor in that the urban centers get the lions share of redistributed tax payer wealth classified as "economic development" and "job creation" ,The Augusta airport renovation was paid for with Obama stimulus funding. Augusta awarded itself 39% of the Obama Stimulus haul and distributed most of the rest to Southern Maine and urban centers . But in the picture drawn by Mr Woods none of that costs the corporation money, Such expenditures are classified either as an "investment" or a "reduction in revenue" as in the Lepage Budget. The "reduction in revenue"  category includes socialist programs for the bottom half of the Maine economy and the job creation funding for the upper half of the Maine economy.

The jobs funded in the legislature's targeted sector must provide a higher than average income meaning that they deliver a high revenue stream to the corporation derived from an income tax on labor. In 2004  when the Pine Tree Zone Tax incentives were first passed , it was promoted as intended for high unemployment low income areas such as the 108 Maine towns in which Steve Woods would like remove their inhabitants (citizens & voters of Maine). When the Pine Tree Zone incentives were first passed there was much concern that it would soon be expanded to include the entire state. After it was passed there were soon efforts being made to do just that prompting Senator Peter Mills to write the following in 2010: (well worth reading the whole)
Typically, the programs are created to help depressed areas, but then political pressure causes them to spread over an entire state, he said. 
"Everyone wants a piece of the pie," he said. 
Maine appears to be following the same trend. 
Originally sold as a way to spur development in the poor regions of northern and eastern Maine, Pine Tree Zones have expanded to include economically healthy communities in southern Maine, such as Wells and Kennebunk. The program started out with a focus on manufacturing sectors, but the Legislature recently expanded it to include a resort in Washington County. 
The Portland area is one of the few places where the zones are prohibited because of the region's healthy income and unemployment data. Still, Westbrook officials and legislators were recently able to win an exemption for the Sappi paper plant to qualify, and midcoast lawmakers got a special Pine Tree Zone for Brunswick and 16 towns in the Brunswick labor market, including Topsham and Wiscasset. 
Critics say the program is growing out of control and will evolve into a broad, new tax break for businesses that will over time shift the tax burden on to homeowners. 
 "It's part of the race to the bottom," said Chris Hall, a former Democratic senator from Bristol. "It shifts the burden on to those least able to afford to pay the taxes." 

In 2003, when the Pine Tree Zone bill was being debated in the Legislature, Hall had warned that the zone would expand to every part of the state because lawmakers want to please the business interests in their home districts. 

The Pine tree Zone was expanded State wide in 2009

The changes in this paragraph of the bill are quite revealing in the context of a theory which I hold to be true- that the state of Maine (which is now the corporation of Maine)  is reaching for totalitarian control which will eliminate local governance:

13. Pine Tree Development Zone.   "Pine Tree Development Zone" or "zone" means a specified area within the boundaries of a unit of local government, or within the boundaries of cooperating units of local government in a multijurisdictional application, the State that has been designated by the commissioner as a Pine Tree Development Zone in accordance with section 5250-J , subsection 3-A or 3-B.

And let us not forget this found in The Report- Governor's Task Force For Economic Redevelopment, Recommended Legislation For An Economic Development Program -110th Congress1976 ,written by the advisory committee on laying the Maine Development Corporation Foundation Stone !

           Recommendations 
2, eliminate the requirement for a local referendum on municipal bond issues.

In the fuzzy math of Steve Woods, Baldacci, Lepage and all the administrations since Governor Longely laid the foundation stone -that is the Maine Development Foundation Stone for the corporate state, socialists programs are calculated as costing the state money- they are not investments- but the redistribution of taxpayer money to private businesses in "public-private relationships" in which the public pays and the private entity profits- that does not cost the state money because it is classified as an "investment"- An investment in what? That is always parlayed as "creating jobs" the same meme through which bond after bond after bond wins approval from the Maine voters to be channeled through the Maine corporate system which redistributes taxpayer dollars as gifts to private industry.

In Lepages 2014 failed jobs bill, it went unnoticed by the Maine media that it was intended only for the two state governed towns of MRRA and Lorring as they are the only two towns located on former military development zones. In these two towns local governance has been eliminated and replaced with a board of tzars appointed by the state. They are now hotspots for the Pine Tree Zone tax incentives. Lepage's 2014 failed jobs bill was an expansion of Pine Tree Zone tax incentives to big businesses. Note that among the plethora of special benefits this bill would have delivered to the largest corporations in Maine, it includes a sales tax exemption !



/2014. An Act To Improve Maine's Ability To Attract Major Private Investments
Creates a new category of business “Transformational business expansion project
meaning businesses that invest $50,000,000 and create 1500 jobs- excluding retailers, electric rate stabilization project and businesses involved in the provision of housing. Thus far the size of business to benefit from Maine’s corporate welfare programs has been limited to 250 employees ( Pine Tree Zone) .  DID NOT PASS!  Governor Paul LePage
SUMMARY
The purpose of this bill is to improve Maine's overall competitiveness and ability to attract major private investment to the State by creating a mechanism for competing for major business expansion and creation projects, referred to as transformational business expansion projects, which are the construction, development, rehabilitation, expansion, modernization or acquisition of any building, structure, system, machinery, equipment or facility in a military redevelopment zone that has a projected cost of $50,000,000 or more and the operation of which is projected to result in a net gain of at least 1,500 job opportunities. An applicant who is certified by the Commissioner of Economic and Community Development as a transformational business expansion project is eligible for the following incentives and benefits:

1. A 20-year corporate income tax credit that includes a 100% credit for the first 10 years that the project is in operation and a 50% credit for the next 10 years that the project is in operation;
2. A sales tax exemption and reimbursement for expenditures made for the project for up to 20 years;
3. An annual reimbursement for up to 5 years from the Efficiency Maine Trust for electric rates that exceed the national average industrial rate as determined by the United States Energy Information Administration and certified by the Public Utilities Commission;
4. Employment tax increment financing benefits for qualified investments. The reimbursement is equal to 80% of Maine income tax withheld each year for which reimbursement is requested and attributed to qualified employees for a period of no more than 10 years. For years of operation beginning after the 10th year until the 20th year, the certified applicant is eligible for a reimbursement of 50% of Maine income tax withheld each year for which reimbursement is requested. This benefit expires after December 31, 2034;
5. Access to a pool of up to $500,000,000 in bond funding for transformational business expansion projects to provide long-term, credit-enhanced financing at taxable bond rates. Financing assistance for a single project may not exceed $400,000,000;
6. Access to workforce development assistance, training and recruitment by the Commissioner of Economic and Community Development and the Commissioner of Labor, who are required to work with agencies across State Government involved in employment or skill training to identify and marshal financial resources to help a transformational business expansion project recruit and train workers; and
7. Access to the benefits available under the Governor's Jobs Initiative Program, including access to funds from the Competitive Skills Scholarship Program.
Additionally, this bill prohibits requiring a person, as a condition of employment or continuation of employment at a transformational business expansion project, to join a labor organization or pay any labor organization dues or fees and establishes, in a manner similar to laws governing the shipbuilding facility credit, a preference for Maine workers, companies and bidders as part of the contractual inducement for the qualified applicant to make a qualified investment and for the State to provide the 

Thursday, February 19, 2015

How the Maine Legislature Robbed the Department of Corrections to Fund Industry Partnerships


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The debate over Governor LePage's budget is a hot one. Last night I commented on an article in the Bangor Daily News

  Here we go again’: Maine communities fight LePage plan to cut state aid

Once again my  comment is not to be found this morning, using a search of my user name. A reply I made to someone elses comment comes up but not my own comment, which mirrors the way in which my ability to posts tweets on #mepolitcs was temporarily disabled (now back to norm). Direct posts are affected but not replies to others:

When I posted, I made a screen shot in case my comment would once again be scrubbed:




























That's not say easy to read so here it is in text form:
The state took money from its own government services to finance Industry partnerships in 2013- yet another bill to redistribute taxpayer money to private businesses, which is not a government function. The fiscal note LD 90 shows funds taken from numerous standard government functions. The amount taken from the corrections department budget is almost as much as the emergency funding now required to finance the corrections department. This is what happens when centrally managing the economy is declared to be an "essential government function" as it was in the late seventies. That so called essential government function- which takes money out of taxpayer pockets to give to private businesses takes over the whole government until it has a vampire effect on what are really essential government functions such as the corrections department- the consolidation of power in the hands of the state is the natural evolution of such a central management system which uses false financial reasoning to argue for the continued consolidation of its own power - false because it is always using fragmentation to make its case- such as municipal governments cost the state money- but financing private businesses does not? And all the taxpayers in Maine are not funding those businesses ? mostly in urban centers ! So now we have a state at war with its people and its municipalities- a state that takes the attitude that the people and the municipalities exists to serve its agenda and not that the state exists to serve the people- and uses financial reasoning while pretending ignorance of underlying principals of political philosophy. Maine needs to get back to our roots and cleanse ourselves of the extra layer of government which threatens to consume all else and eliminate all other sources of power. Scrubbed comment by Mackenzie from the Bangor Daily News story   ‘Here we go again’: Maine communities fight LePage plan to cut state aid

Recently I noticed news stories on emergency funding for the Corrections Department and another story promoting the state's new program for "creating jobs" via the new Industry Partnerships Program When I was creating the timeline the 2013 bill for Industry Partnerships stood out because the bill was taking central management to a whole new level. It declared that the state would manage relationships between private business in the state of Maine and to fund this new government function it was taking funds out of traditonal government functions including the Corrections Department.

The most recent Bangor Daily News story on the Industry partnerships program is headlined
 Making Maine competitive starts with giving people a competitive edge !Maine House Speaker Mark Eves is proposing a $5 million, five-year initiative this winter to jumpstart Maine Industry Partnerships. The North Berwick Democrat is proposing seed funding in hopes of launching 10 such partnerships across the state through a program the Legislature started in 2013, but to which it allocated limited funding.
Last month, Eves highlighted one partnership example already in place in York County. There, about 30 businesses, with the help of the Manufacturers Association of Maine, came together and decided there was a regional need for workers skilled in precision machining. The Legislature kicked in about $300,000, and Pratt & Whitney — which manufactures engine parts for military and commercial jets at a 1,300-employee North Berwick facility — put up another $250,000 to start a precision machining program at York County Community College. The first class of 15 students in the certificate program graduated last spring. At the same time there were these two stories on funding problems at the Department of Corrections:
In another news story Governor LePage deplores the lack of sound fiscal management by the Department of Corrections:
LePage looks to elude Board of Corrections with county jail ‘receiver
The move would allow LePage to appoint a receiver “when, in the judgment of the governor, the state Board of Corrections system, for whatever reason, fails to fulfill the goal of sound fiscal management,” the amendment states. The receiver would be in place until June 30 of this year. At issue are funding shortfalls totaling nearly $2.5 million this year for Maine’s 15 county jails. Five of those jails — in Aroostook, Cumberland, Penobscot, York and Androscoggin counties — are in danger of closure by the end of the state’s fiscal year on June 30. Sheriffs and lawmakers from those counties have said they would have to refuse to accept new prisoners or release inmates if they ran out of money.

But take a look at the fiscal note for the 2013 LD90 bill creating industry partnerships as a new government function, including Industry Partnership Grants


MAINE LEGISLATURE This amendment removes General Fund appropriations to the Department of Corrections of $955,500 in fiscal year 2013-14 and $1,313,417 in fiscal year 2014-15, removes the General Fund appropriation to the Executive Department of $100,000 per year beginning in fiscal year 2013-14 and reduces funding to the Department of Labor by $114,017 and $112,208 in fiscal years 2013-14 and 2014-15, respectively. The bill as amended by this amendment has a General Fund cost of $2,250,000 in fiscal year 2013-14 and $2,765,000 in fiscal year 2014-15 as shown in the table below

So in order to fund Industry Partnerships -a new state business investment program, over the last two years $2268917.00 was taken out of the budget for the Department of Corrections, which is actually an essential government function since long before the legislature deemed centrally managing the economy to be an "essential government function" -and in so doing, forgoing the consent of the governed in instituting this major  shift in the governing political philosophy of Maine!

So here we are in 2015 and Governor Lepage is deploring the Department of Corrections for its unsound fiscal management - caused by a shortfall of  $ 2500000.00 That's $231083.00 more that the legislature removed from the budget for the Department of Corrections to finance Industry Partnerships but when operating on a depleted budget costs will be higher.

The Industry Partnership Program provides publicly funded job training for jobs in Maine State Inc's corporate grid. meanwhile at the same time there is a push to transform the minimum wage into a living wage. The minimum wage is a wage that allows businesses outside the state corporate grid and not qualified to have their employees trained on the public dime to afford to train employees on the job while paying them and of course covering their own payroll taxes, unlike the corporations in the state's corporate grid which through the Pine Tree Zone tax incentives can have up to 80% of their corporate payroll taxes transformed into a burden on the general taxpayers of Maine. Many small independent business people barely making a living wage themselves when they start out- that used to be part of the American dream- pulling one's self up by the bootstraps it was called- but now the state does that but only if the business fits the state's corporate vision.

In Governor Seldon Conner's Inaugural Address he said these words pertaining to the new constitutional amendment:

Section thirteen presents a discretionary field of action which your own honor will impel you to occupy to the fullest extent.'The title of 'Special and Private Laws,' which includes so large a portion of the laws of former Legislatures, is an obnoxious one, conveying suggestions of privilege, favoritism and monopoly; though happily these evils have not in fact, stained the character of our legislation, they should not be suffered to have, even in the form of our laws, any grounds of suspicion that can be removed. Other weighty objections to special laws for private benefit are, that they are obtained at the public expense, and in their passage distract the attention of legislators from matters of public interest. The opportunity is now afforded, and the duty enjoined upon you, by the amendment, to restrict the necessity for such laws to the narrowest possible limits. An analysis and classification of the private and special laws upon the statute books, will inform you of the objects for which it is desirable to provide by general laws, if practicable. 'Many objects have been hitherto specially legislated upon although they were amply provided for by general laws. I have distinguished authority for the statement that sixty or more of the corporations created by a special act for each, by the last Legislature, could have been created and organized under general laws. The reason why the general laws have not been resorted to to a greater extent, is not, so far as I am informed, to be found in any insufficiency or defect of those laws, but in the greater ease and simplicity of the method of application to the Legislature and in the fancied higher [146 Me. 323] sanction of an authority proceeding directly from it. Section fourteen, relating to corporations is compressive and peremptory.. It relates to all corporations, except only those for municipal purposes. It clearly prohibits their creation by special acts if the objects desired can be secured under existing general laws.' ( emphasis mine) From Governor Seldon Conner's Inaugural Address  1876 - I don't have a link for this - it was found in The Maine Constitution- A reference guide by Marshall J Tinkl

Tuesday, February 10, 2015

Fascism (State Corporatism) Parsed in Kinder Gentler Terms


















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This is a post I wrote  for a disussion on The Lepage Tax Plan The Maine Citizen 

Woodcanoe- the whole plan to me looks like an attack on local sovereignty. Lorring and MRRA have none- the "middleman" (local government) has been eliminated for those two towns.


Ever since The corporate state was established under Governor Longley as the first corporation The Maine Development Foundation, every administration has embraced the corporate state- it allows them to be business developers but business developers are not representatives of the public- they serve business interests only, which the legislature spins as "for the public benefit" which applies to the legislaure's targeted sector only, apparently businesses not in the targeted sector do not serve the public benefit. The state corporations are frequently named as business development corporations- including MRRA and Lorring and the DECD corporation. - What do business development corporations do- they remove existing communities to make way for their own designs. A state owned development corporation is no different- except that it is worse- technically it is the definition of fascism.
Quote:It's the Corporate State, Stupid

"Fascism should more properly be called corporatism because it is the merger of state and corporate power." - Benito Mussolini.

David G. Mills
It's the Corporate State, Stupid
11/10/04 "ICH" -- The early twentieth century Italians, who invented the word fascism, also had a more descriptive term for the concept -- estato corporativo: the corporatist state. Unfortunately for Americans, we have come to equate fascism with its symptoms, not with its structure. The structure of fascism is corporatism, or the corporate state. The structure of fascism is the union, marriage, merger or fusion of corporate economic power with governmental power. Failing to understand fascism, as the consolidation of corporate economic and governmental power in the hands of a few, is to completely misunderstand what fascism is. It is the consolidation of this power that produces the demagogues and regimes we understand as fascist ones. http://www.informationclearinghouse.info...le7260.htm

When Governor Longley called in the heads of industry to redesign Maine's system of government, this is a recommendation found in their report:

Quote:2, eliminate the requirement for a local referendum on municipal bond issues. read more athttp://americanpoliticalphilosophy.blogspot.com/2014/11/1977-maine-capital-corporation-seeding.html

This is all sold to the public using financial reasoning only and pretending ignorance of political philosophy by those who are well educated.

Quote:From the article linked above on Fascism 

But even Britt’s excellent article misses the importance of Mussolini’s point. The concept of corporatism is number nine on Britt’s list and unfortunately titled: “Corporate Power is Protected.” In the view of Mussolini, the concept of corporatism should have been number one on the list and should have been more aptly titled the “Merger of Corporate Power and State Power.” Even Britt failed to see the merger of corporate and state power as the primary cause of most of these other characteristics. It is only when one begins to view fascism as the merger of corporate power and state power that it is easy to see how most of the other thirteen characteristics Britt describes are produced. Seen this way, these other characteristics no longer become disjointed abstractions. Cause and effect is evident.


In Maine they have found a friendlier way to parse "“Merger of Corporate Power and State Power.” they call it "public private relationships" which is to be found in about every charter for a state corporation.

Here it is in the charter for the Maine Development Foundation:

Quote:§915. Legislative findings and intent: "There is a need to establish a new basis for a creative partnership of the private and public sectors ...but which does not compromise the public interest or the profit motive. The state's solitary burden to provide for development should lessen through involving the private sector in a leadership role....... The foundation shall exist as a not-for-profit corporation with a public purpose, and the exercise by the foundation of the powers conferred by this chapter shall be deemed and held to be an essential governmental function.

Compare the Pollyanna rhetoric about there being no compromise of public interest and the profit motive (which really means that the legislature is declaring them to be one and the same) with what is in the statute for the Maine Capital Corporation. which was chartered simultaneously to the Maine Development Foundation by the recommendation of the heads of industry that Governor Longley consulted:

The following is a quote from the now repealed statute"

Quote:This impediment to the development and expansion of viable Maine businesses affects all the people of Maine adversely and is one factor resulting
in existing conditions of unemployment, underemployment, low per capita income and resource underutilization. By restraining economic development, it sustains burdensome pressures on State Government to provide services to those citizens who are unable to provide for themselves.

To help correct this situation, it is appropriate to use the profit motive of private investors to achieve additional economic development in the State.

This can be accomplished by establishing an investment corporation to provide equity capital for Maine businesses and by establishing limited taxcredits for investors in the corporation to encourage the formation and use of private capital for the critical public purpose of maintaining and strengthening the state's economy.(emphasis mine)

This entire idea runs muck over the Maine State Constitution- not only Article IV Part Third Section 14 which prohibits the charter by special acts of legislation of corporations serving state purposes- but also the part that says the legislature shall not transfer the power of taxation in any way

But politicians loved it and found it irresistible because politicians love power and LePage is no different.

Next will the Maine political class embrace George Soros's terminology for the free enterprise system and start calling it "market fundamentalism" ? Not that far from calling local authority "unnecessary middlemen" !

Saturday, February 7, 2015

2013 Maine Municipalities Warned to Tighten their Belts as Seed Capital Tax Credit Expands Eightfold




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Compiled from various notes: 

Feb 2013 An Act To Provide Greater Access to Capital for Certain BusinessesThrough Advance Payment of Employment Tax IncrementFinancing Benefits 

SUMMARY 36 This bill allows the Commissioner of Economic and Community Development, under 37 extraordinary circumstances, to provide advance payments of employment tax increment 38 financing benefits to a qualified business based on a net present value calculation of the 39 projected employment tax increment financing benefit to the business. The advance 40 payment must be made in the form of a loan through the Maine Rural Development 41 Authority, pursuant to applicable conditions and requirements.


Commentary This refers to the (up to) 80%payroll  tax credit that the state provides to its targeted sector- or in other words that the state requires the tax-paying sector (employees , retail sector, other businesses in the UN-targeted sector) to pay on the targeted sector’s payroll taxes. This statute says that the targeted sector business can collect those payouts (from the UN-targeted sector) in advance- talk about the workers being a commodity (as did Marx) here you have it- the owner of the means of production can now get his re-reimbursement before he hires the employees. The amount of money that the capitalist gets is a function of the employees that he is anticipated to hire and the financing of the payout comes from other workers and other businesses, which the state dis-qualifies from offering “quality jobs”pursuant to the definition of quality jobs as providing higher than average (taxable) employee  income. The fact that the UN-targeted business has to pay its fair share of the targeted sector’s payroll tax makes it affordable for the targeted sector to create those “quality jobs ( jobs that pay higher than average) as it increases the burden on the UN-targeted sector designated by the state as creators of  “UN-quality jobs” ( jobs that pay an average wage or below-in other words middle class jobs) making it all the harder for the tax-paying sector to rise to the level where they can offer “quality jobs” and thus enter the strata where in others pay most of their payroll taxes- although they might have to move to a different state to get in on the deal! 

So in other words , the legislature is dishing out money to capitalists in exchange for income tax revenue that doesn't exist yet - but the money has to come from somewhere TODAY if it doesn't exist theoretically until tomorrow- No Problem! the legislature can just pass a temporary increase in sales tax !
October 2013 Sales Tax Rate Changes Effective October 1, 2013 Sales tax rate increases recently passed by the legislature take effect on October 1, 2013.Sales tax rates  have been temporarily increased from October 1, 2013 through June 30, 2015.  The general sales tax rate of 5% will increase to 5.5%.  The 7% tax rate on the rental of living quarters, sales of prepared food, and sales of liquor sold on premises will  increase to 8%.   The 10% tax rate on short term rentals of automobiles remains unchanged.


Aug 2013  LePage said in a letter he has been sending to municipal officials across Maine that his proposal to cut nearly $200 million in municipal revenue sharing for the next two years was forced by exceedingly tight budgets in other areas. He urged municipal officials to replace their complaints with their own ideas to match government spending with available revenues. In the letter, which LePage spokeswoman Adrienne Bennett said has been sent to dozens of municipal officials in recent weeks, the governor said he couldn’t cut debt services because the “state must pay its bills and couldn’t reduce funding for the judicial branch because the state’s courts are running behind schedule.
“Other core state functions — state police, corrections, our natural resources agencies — have been cut to the bone to feed continued growth in education and welfare spending, and they cannot be cut any further without reducing public safety or our future economy,” wrote LePage. “That leaves only the three large pots of money, and I chose revenue sharing.Bangor Daily News
LEPAGE 2015 Budget
There is a significant sum, equitable to the amount identified to be cut from municipal revenue sharing in LePage's 2013 speech,  identified as Other conformity items 5102(1-D) $150 to 250 million per year. About that sum, it is said:

Tax expenditures resulting from conformity to Federal AGI that do not involve an above-the-line deduction on the Federal Form 1040 are particularly challenging to estimate due to a lack of data. For this reason we isolate these expenditures at the end of the income tax section and provide specific estimates only for the largest expenditures. These estimates, based on the JCT study, are only intended to convey the order of magnitude of the expenditure.
All tax expenditure estimates in this report reflect revenue loss to the General Fund. 
In 2013 The Legislature also passed a bill which expands the states totalitarian  nature in  managing not only state corporations and it's network of public private relationships but also relationships between private businesses. Which businesses are included will be the same as the state's targeted sector. Since the state has concentrated capital redistribution in Maine and at the same time has included intellectual property rights in numerous state corporation charters, this is of a nature similar to the New England Foundation for the Arts, with whom the Maine Arts Commission partners and which channels NEA funds and  has a terms of agreement laying claim to the global copyrights of whoever uses its site for all eternity,  which I have been writing about since 2007- Here is the latest development in that Bait & Switch at The New England Foundation For the Arts

2013 §3304. Industry partnerships
1. Objectives.  The objectives of an industry partnership are to:
A. Organize businesses, employers, workers, labor organizations and industry associations into a collaborative structure that supports the sharing of information, ideas and challenges common to their industry cluster; [2013, c. 368, Pt. FFFFF, §1 (NEW).]

I went back to try to find the bill text fo§3304. Industry partnerships to determine its fiscal impact but my searches kept bring up the fiscal impact for An Act to Strengthen Maine's Workforce and Economic Future

The fiscal notes summary for this bill states:

This amendment removes General Fund appropriations to the Department of Corrections of $955,500 in fiscal year 2013-14 and $1,313,417 in fiscal year 2014-15, removes the General Fund appropriation to the Executive Department of $100,000 per year beginning in fiscal year 2013-14 and reduces funding to the Department of Labor by $114,017 and $112,208 in fiscal years 2013-14 and 2014-15, respectively. The bill as amended by this amendment has a General Fund cost of $2,250,000 in fiscal year 2013-14 and $2,765,000 in fiscal year 2014-15 as shown in the table below
So it is fair to say that the  budget which has "been cut to the bone to feed continued growth in education means  to feed workforce training for the state corporate grid.  The University of Maine is a corporate instrumentality of the state with the legislature having jurisdiction over curriculum. The University of Maine maintains its own Advanced Manufacturing Center and various other businesses. The educational funding will be targeted to finance training in the state's own corporate grid and its public-private partnerships, giving advantage to the corporate state over private industry not included in its public private relationships. in 2015 the Maine legislature wants to merge the Maine Community College system into the University of Maine- giving the state corporate grid even more power and access to public funding to train its own workers.

Also in 2013, while Governor LePage is warning Maine's local governments to find a way to tighten their belts, the legislature passes the Expanded & Improved Seed Capital Tax Credit, which I have written reams about in this blog- suffice it to say that although it is called a tax credit, it is expanded by including non-residents. .Since the tax credit is refundable, if no taxes are owed (non-residents do not owe Maine taxes) then investors will receive a refund of up to 60% of their investment while retaining all profits. Investors living in Maine are just as likely to not owe taxes thanks to the Pine Tree Zone tax exemptions. This bill was "improved" by increasing the rate of direct transfer of taxpayer dollars to capitalists by eight fold causing the then CEO of the FAME corporation to testify in favor of restraint:
One suggestion we would offer concerns private venture funds in Section 3 of the bill. The proposed language would modify existing I0 M.R.S.A.§ 1100-T(2—C) paragraph (D) to increase the limit on tax credits for private venture capital funds from $500,000 to $4 million. This is a rather larger increase from the current limit. We think a more modest increase of $1 million is preferable and would better limit the fiscal impact of the bill. Testimony by Elizabeth L Bordowitz,Chief Executive Officer Finance Authority of Maine 

But restrain they would not! Leave that to the municipalities!


Here is some text from that bill-passed as LePage is warning the municipalites to tighten their belt because municipal revenue sharing is going to be discontinued!



Details of the Expanded and Improved Seed Capital Tax Credit as passed in 2013

  1. ·Removing limits on the life of a capital fund ( after following the references back to the original statutes, the limit that I found is to the length of time that the investor has to collect his tax credit pursuant to the limitation imposed that it must not be greater than 50% of his total tax due. There has been a 15 year limit imposed on the investor in which  his tax credit can be applied....until now.
  2. The following sentence is added to the definition of a venture capital fund: An entity that otherwise qualifies as a private venture capital fund may elect not to be treated as a private venture capital fund for purposes of this section with respect to any proposed investment.
  3. The amount of annual gross sales for the business receiving the investment has been changed from $3,000,000 or less to $5,000,000 or less.
  4. The requirement that the operation of the business must be the full-time activity of the owner has been changed to  a substantial professional activity of at least one of the principal owners, as determined by the authority
  5. The requirement that the eligible business bring capital to the state has been struck out.
  6. In section D  in which limitations on the investment to  which any entity is applying are discussed, the word "entity" is struck out and replaced with "private venture capital fund"
  7. Section D changes the aggregate limit for a private venture capital fund from $500,000 to $4,000,000 and strikes out the individual limit within the aggregate for entities treated as a flow-through entity for tax purposes.
  8. Changes the annual gross sales allowed for eligible businesses from $3,000,000 to $5,000,000
  9. Changes the requirement that the operation of the business must be the full-time activity  of the principal owner to substantial professional activity of one or more individuals who are not managers of the private venture capital fund, as determined by the authority.
  10. Changes the prohibition against a tax credit certificate being issued to a private venture capital fund if an investor in the fund is a principal owner of the eligible business or a family member of the investor has any existing ownership interest in the business. by striking out "investor" and replacing it with "manager of the fund".
  11. Increases the amount of that the tax credit is not allowed to exceed , which was  $2,000,000 in 1996 and becomes $5,000,000 in 2015-

Lepage didn't sign the Seed Capital Tax Credit, saying it wasn't "impactful enough" A close reading of that bill reveals that it contains size limitations which would have prevented it from being applied to Lepage's failed jobs bill of 2014 which expanded the availability of Pine Tree Zone Tax Exemptions to big businesses.




It was passed by the House- no roll call available.

Time line of Incrementalism

1987 Seed Capital Tax Credit established 30 % of capitalist investment covered by taxpayers spread out over 2 years.

2001 chunk of investment paid by taxpayers goes from 30-40%. Rate of transfer from people to owners of the means of production escalated by 50%- spread out over 7 years

2011 Maine Seed Capital Tax Credit Amended to increase the amount paid by taxpayers to 60% of capitalist's investment

2013 Taxpayer now pays 60% of capitalists investment spread out over four years- rate of transfer of wealth from taxpayers to the owners of the means of production escalated eight fold. The legislature calls the bill “The Expanded and Improved Seed Capital tax Credit” Expanded indeed! Improved? Only for the capitalists!

The following is a quote from the statute for the Maine Capital Corporation", which is repealed but reincarnated in current network of state corporations


This impediment to the development and expansion of viable Maine businesses affects all the people of Maine adversely and is one factor resulting in existing conditions of unemployment, underemployment, low per capita income and resource underutilization. By restraining economic development, it sustains burdensome pressures on State Government to provide services to those citizens who are unable to provide for themselves. (emphasis mine)
To help correct this situation, it is appropriate to use the profit motive of private investors to achieve additional economic development in the State. 
This can be accomplished by establishing an investment corporation to provide equity capital for Maine businesses and by establishing limited tax credits for investors in the corporation to encourage the formation and use of private capital for the critical public purpose of maintaining and strengthening the state's economy.

Repeating the justification given by Governor LePage for eliminating revenue sharing:
Other core state functions — state police, corrections, our natural resources agencies — have been cut to the bone to feed continued growth in education and welfare spending, and they cannot be cut any further without reducing public safety or our future economy,” wrote LePage. “That leaves only the three large pots of money, and I chose revenue sharing.
If the first justification (1976) for establishing state corporatism was that it would relieve the state of the burdensome pressure of taking care of those unable to care for themselves- obviously the function put forth to justify state capitalism has failed, and so, as it is popular to do in the current  culture of politics, we should be "having a conversation"  about why state capitalism is still expanding instead of being the first item on the cutting block, having so consistently and resoundingly failed in it's self justifying purpose !
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