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

Thursday, October 25, 2018

The Excluded Micro Economy in the Boothbay Region and Beyond

Two recent news stories in the Boothbay Register provide an oveview of what is going on in economic development in Boothbay. On October 4, 2018, in the article titled, JEDC future hinges on filling vacant co-chair seat, Joseph Charpentier reported that the JECD, after spending 79000 to hire New York consultants to create an economic development master plan for the entire peninsula, is in decline. The JECD doesn't know how to implement the plan produced for the JECD by the New York consultants, Camoin Associates. The JECD has expended its welcome to use taxpayer pockets to fund its agenda. and the Boothbay co-chair is currently an unfilled position of the public-private development group.

The second story, CEO’s action makes for smooth sailing for new Boothbay business, by Bill Pearson, is about the rescue by Code Enforcement Officer Jason Lorrain of a small manufacturer from a major setback at the hands of the Boothbay selectmen.

Recently a local artist purchased a property thinking he could establish a gallery but the town selectmen prohibited it. In 2013 town officials shut down Stimpson boat builders. Stimpson's right to build boats was eventually restored but at a great cost to the boat builder. Although town selectmen claim to want young people, families, and full-time year-round jobs to the peninsula, they do not welcome or encourage micro-economy jobs and small manufacturers. The Boothbay ordinances are very restrictive of that sector of the economy. The only certain place the selectmen allow for such activities to establish themselves is in Industrial Park, also in TIF District #3, but the location has no attractions, except for the ever-expanding storage units businesses.

These two stories are related by the fact that small manufacturing is a craft. Boat builders and probably even sail makers are designer-craftsmen.

To fill in the backstory, when I applied for fiscal sponsorship to a New York non-profit fiscal sponsorship organization, for our ceramic design and slip-casting business, qualified as a social enterprise, my application took twice as long, as anticipated, all the while being told, not to worry. we would be approved. We were rejected because I used the word "production" on our application. The New York board declared that the word "production" means one is only in it for the money.

The board did not reject us outright but encouraged us to apply for a different mission, such as a school or a museum. The reason we were initially told we would qualify for fiscal sponsorship is that Andersen Design has been teaching ceramic skills on the job since we were established in 1952, but the non-profit fiscal sponsorship organization had such strict rules for what we would be allowed to teach that it meant we would not be allowed to teach what we know and have a passion about- except for our glazes. We would be allowed to teach the general public how to make our proprietary glazes which are inseparable from our brand signature.

I chose to apply for the Museum. I noticed, after the fact that it was better to show no profit in one's numbers. Non-profit organizations do not approve of wealth creation. I had not taken this fact in when I made my application for our production company. Using my Dad's parameters of operations, which is a system of ratios, I projected that we would almost make back the entire amount of funding we were targeting based on setting up a new state of the art production and hiring six to eight employees. Since materials are a percentage of the total budget, knowing the current price of materials, which has risen along with everything else, allowed me to project the numbers for everything else, using the ratos. I put a great deal of time and effort into those figures but when I applied for the museum, having no idea of the expenses involved, I just made it up in about half an hour and showed that the Museum would lose money, since upon re-reading the instructions, I understood that this is what the board wants to see. The board may have used my choice of words ("production") as their cited reason for rejecting us but the fact that I showed that we could make a profit if funded surely did not help. No wonder they concluded Andersen Design is "only in it for the money". It's that small word "only" which is absolutely one hundred percent wrong, as I had written in the application that if we were only in it for the money, Andersen Design would have moved its "production" overseas long ago like most of the western ceramics industry. The fact that we did not, puts us in a rare and special position to revitalize ceramic slip-casting in the USA in the present day.

Midcentury ceramic designer, Weston Neil Andersen designed a series of enticing mugs that are at once unique, playful, elegant, joyous and classic. Andersen mugs have always been handmade in America. Each mug is slip-cast and meticulously hand finished. 

So that is how it came to be that Andersen Design is fiscally sponsored to create the Andersen Design Museum, which I later changed to the Andersen Design Museum of American Designer Craftsmen. It's a very good concept but, as is often the case with boards, it involved a total and complete change of our mission. My first passion is to bring Andersen Design - an American production as an art form, into the twentieth century so that future generations will have greater options of being able to spend their lives involved in a process which I love and am grateful to have in my life. For me, it has always been about the work process itself. That is an idea central to the concept of an Andersen Design Museum of American Designer Craftsmen, but that project shall remain on the back burner for now because I have to devote my own energies first and foremost to my first passion.

But, back to the thread of this post, Once we were fiscally sponsored for a museum, we had to learn about a new industry,. We knew nothing about the way the non-profit world functions and so I approached Wendy Wolf with the idea, observing that she and the co-sponsor of the JECD both had a non-profit background and asked for advice on how to go about fundraising. Wendy Wolf chose to interpret my request as asking the JECD to fundraise for us. She did what most of the economic development organizations do. She sent me an internet link for someone else to contact. I had included a sales pitch for the museum explaining how it would be a benefit to the local economy but Ms. Wolf did not find my pitch interesting enough to engage in any way. Her response was that the JECD cannot do anything to help individual businesses, profit or non-profit, and advised me to get help from my own peer group.

Later, I realized through my own research that the form of fiscal sponsorship we have for the Museum is inadequate, while it would have been fine for our Great American Ceramic Designer-Craftsmen Network vision- because we know everything about our own business. Through independent research, I learned that there are comprehensive fiscal sponsors which would make the museum idea much more viable if combined with a small support team on our end. I have been up and down the economic development resources offered in Maine but I had to learn this on my own. If Wendy Wolf or Abby Levin know this difference, they were not about to tell me. I contacted a site for philanthropy lawyers in Beverly Hills, to find out more information about comprehensive fiscal sponsorship and how it works. Before I knew it I was talking on the phone with the CEO and his team. I entered the conversation as one in which I was seeking information about later realized I should have been selling myself. I had discovered my peer group and left the door slightly ajar in the case at a later date we are ready for that. For now, I  have too much on my plate, running our production practically by myself, and all the rest of the functions of keeping this unique American business alive. Given what is happening in the Boothbay Region, I do not think it is a good location for a designer-craftsmen community, and that is the type of community in which I envision the Andersen Design Museum of American Designer Craftsmen being located, should it ever manifest. Before Boothbay could be a viable location for such a museum, it would have to totally transform its town ordinances so that it welcomes and encourages small manufacturers, which is what designer craftsmen are. I also think the Museum should be in a community that values history, such as Waldoboro, which can greatly benefit from a business like ours which generates destination shopping, and of course, the Museum itself is also a destination.

The Camoin Report highly emphasizes the value of museums. That is what the JECD has to figure out how to implement, according to their master plan, created for them, by New York consultants.

Saturday, October 20, 2018

Comment Critical of Susan Collins Kavanaugh Speech Deleted from Boothbay Register Comments

The latest comment by this author to be removed from the comment section of the Boothbay Register takes censorship of free speech beyond the realm of local politics.

You can read the whole discussion- minus my response to JFxm  HERE

Proud of Susan Collins


Detected as spam Thanks, we'll work on getting this corrected.

I think you are missing the point. There is something called "Separation of Powers" which is in the United States Constitution. The Powers which are separated are the Legislature, the Justice Branch, and the Administration. "Innocent until proven guilty applies in the Justice branch of government because it is ONLY the Justice branch of government which has the power to prove innocence or guilt. Without that power, "innocent until proven guilty becomes "anyone accused of a crime is innocent. PERIOD"

Collins did not honor the due process of Congress, which, while not having the power to conduct a trial proving innocence or guilt, does have the power to use sworn testimony under oath. Since the anyone swearing under oath can be charged with a felony if what they say can be established to be false, Congress must grant the sworn testimony the assumption of truth spoken under the rubric of "innocent ( speaking truthfully) until proven guilty( of not speaking truthfully- a felony). There was no criminal case being conducted because that can only be conducted by the Justice Department- NOT by Congress. If it were conducted by the Justice Department both sides would have been permitted to call witnesses, to see discovery, to cross-examine witnesses and so forth. None of that is permitted in a congressional hearing. The only "innocent until proven guilty" which comes to bear in a Congressional hearing pertains to the sworn testimony pursuant to the threat of losing one's liberty if not true. The innocence of guilt pertaining to whether Kavanaugh is guilty not within the powers of Congress to address,

Kavanaugh was NOT accused of sexual assault within a context in which he can lose his liberty. He can only lose his liberty in the context of a congressional hearing if it can be established that he lied under oath- exactly the same as Ford- and even then, it may require a separate process conducted by the Justice branch of government.

Collins acted as judge and jury, accusing Ford of Not being in her right mind because she asserted that Kavanaugh was innocent of any crime which anyone might accuse him of- being that in that contest there is no way to prove innocence or guilt.

Before the FBI Investigation, the pro-Kavanaugh sect was saying it was useless because the FBI cannot draw conclusions. There were four affidavits submitted to the hearing corroborating Fords story. Mark Judge supposedly entered an affidavit- or some kind of statement. but he would be an accessory to the crime and Congress cannot grant immunity. Congress did not allow corroborating witnesses to testify and certainly not to be cross-examined. That may be because Congress knows it does not have the power to conduct a trial which may establish innocence or guilt. Ford asked to be interviewed by the FBI but was not allowed. The entire process was a sham.

And yet our President announced that Kavanaugh had been proven innocent by Congress! No secret that our president lacks the attention span to understand the Constitution.

End of blocked comment.

I have already seen frequent demands on social media that Ford be prosecuted. If that were to occur it would not be in a congressional hearing, it would be in the justice system and Kavanaugh could not escape being part of the investigation in which Ford is the accused and assumed to be innocent until proven guilty.

Sunday, September 30, 2018

Comment about Lepage's Major Business Headquarters Expansions Program Deleted from Boothbay Register Candidates Discussion

I was not surprised to find another comment deleted in the Boothbay Register, identified as spam, in fact, I expected it, and so I took a screenshot of it in it's published state (see below). It was posted in a discussion about local political candidates, the people who want to be our representatives, making the decisions about what legislation is enacted.

spam Definition found on Miraim Webster
\ ˈspam  \Definition of Spam unsolicited usually commercial messages (such as e-mails, text messages, or Internet postings) sent to a large number of recipients or posted in a large number of placesspam
spammedspammingDefinition of Spam (Entry 2 of 3)
transitive verbto send or post spam tospammed customers with discount offersspamming a message boardintransitive verbto send or post spamThe company was accused of spamming via text messages.Spam
Definition of Spam (Entry 3 of 3)
used for a canned meat product

The deleted comment brings up the Pine Tree Zone Tax Exemptions, which are long overdue to be repealed but there is no existing public dialogue to even suggest the idea, except for occasional articles about or by OPEGA, which is the Maine State Office of Program Evaluation and Government Accountability, and so they have to be allowed through every once in a while!

OPEGA has been reporting for years that the Pine Tree Zone is not meeting its purpose, and costs the taxpayers more than it is worth to the taxpayers, but, based on what I have seen, in my research, the taxpayers are pawns to be played in a transactional exchange between the public and private sides of our state government. The taxpayers may lose, but special interests profit from the exemptions and so the Legislature keeps passing more Pine Tree Zone styled legislation such as the Major Business Headquarters Expansions Program passed last year, which I wrote about in my previous post.

The good news is that the Pine Tree Zone is entering into its sunset years but the bad news is that, as with the Seed Capital Tax Credit, there will most likely be a push to renew it complete with full media support.

In the latest OPEGA report on the Pine Tree Zone, OPEGA sounds quite frustrated with making reports which are never seriously considered, such as in this paragraph:

OPEGA determined that many of the approved evaluation questions for the PTDZ Program could not be answered without considerable effort because of the shortage of readily available program data. We believe the data necessary to answer these questions could be obtained. However gathering it, preparing it and assessing it would require a significant amount of time for OPEGA staff and potentially the staffs of DECD, MRS and business participants. Given that the PTDZ Program has already begun to sunset and new certifications will not be issued after next year, OPEGA decided not to pursue obtaining that data at this time

The Major Business Headquarters Expansions Program is Pine Tree Zone styled legislation so when the Pine Tree Zone is phased out, a bigger meaner Pine Tree Zone is already in place. I have searched the Major Business Headquarters Expansions Program and related phrases but have not found the Major Business Headquarters Expansions Program reported or discussed in the media, despite the fact that LePage's last attempt to pass a similar bill received a great deal of coverage, It is no wonder that the public-private government wants to keep this bill secret. Taking the giant step of creating a tax on the Maine people (see the last post) to cover free capital for global and national corporations might stir up some resistance, as it should, Imagine how this can evolve into the future!

The purpose of LePage's transformational Act is to lure global corporate business and culture to Maine. The lure is a 2% refundable tax credit, which in practice is arguably a tax levied on the people of Maine based on 2% of the global corporation's global investments  The wording is vague as to whether the 25% of total employment to be located in Maine still holds if the corporation employs more than 5000 employees. The Maine Legislature was very specific when it included the term "unitary business" in its description of a "qualified investment". The term "unitary" has a specific legal meaning, establishing that neither the specificity nor the vagueness of statutory language is an accident.
In Amoco Corp. v. Comm'r of Revenue, 658 N.W.2d 859, 865 (Minn. 2003), the court held that a business is unitary when the operation of the business within the state is dependent upon or contributory to the operation of the business outside the state. USlegal

What happens when the global business exceeds 5000 employees is important to know when projecting how the transformation will unfold in the future. The Act requires that the qualified business has locations in at least three other states or countries. If all four of those states or countries make a similar agreement with the global or national corporation- that would entail 100% of 5000 of the global corporation's employees to be employed in those four states or countries in exchange for the taxpayers in those state and countries refunding 8% of the corporation's capital investments, provided the other states or nations also offer similar PineTree Zone styled tax exemptions. This amounts to the people financing a corporation but not sharing in the profits. It will not take long for that percentage to leap from 8% to 10%. With that kind of free capital, the corporation can rapidly grow and soon will be hiring more than 5000 employees, anywhere in the world. Is the corporation then free to make similar deals with 4 more states or countries?  If so, eventually, the global corporation will have 100% (or more) of its ever-expanding corporate empire financed with free capital, from the people, thanks to their governments.

We should be able to bring up this issue in the public dialogue as we approach election season, but that is not the world we live in.Norms need to change or things are only going to get worse.

Here is the same post from my Disqus file after it was deleted: At first the Disqus message said it was deleted as spam, when I checked that it is not spam, the message changed to what is now displayed.

  • Avatar


    You have that backward. Take a look at the Seed Capital Tax credit- called by the Legislature the "Expanded and Improved Seed Capital Tax Credit" when it was renewed a few years ago. It was expanded and improved for the private capitalists who are the receiving end of the taxpayer burden. The credit is written in one act and the tax exemptions in another such as the Pine Tree Zone exemptions studied and reported to be a loser for the taxpayers for many years now.
    As Lepage was creating what amounts to new Pine Tree Zone exemptions for global capitalists, the OPEGA Report on the Pine Tree Zone for 2017 has a notice in large letters on the top of it which says "–Program Design Does Not Support Intended Goals; Whether Program Is Achieving Results Despite Design Is Unknown As Adequate Data Is Not Readily Available to Assess Outcomes" . This lack of government transparency has been reported for years, The media refers to the tax credit in the Seed Capital Tax Credit and Lepage's new Major Business Headquarters Expansions Program as mere "tax credits" but they are both "refundable tax credits" meaning if the holder owes no taxes, the public owes the holder the amount of the credit, Refundable Tax Credits would better be named a reversible tax credit because they reverse the roles of who owes whom a tax. Refundable Tax Credits allow corporations to tax the public and now we will be taxed 2% on the total business investments anywhere in the world of corporations in the Major Business Headquarters Expansions Program. The statute explicitly uses the word "unitary" which has a specific legal meaning that it is not restricted by state and global borders.
    These tax credits are available only to the Legislature's "targeted sector", not to the whole of the economy. These programs distribute free capital to the upper crust of the economy under the rubric of "job creation". This is requiring the workers, and all taxpayers NOT in the targeted sector to capitalize on privately owned businesses in exchange for creating jobs which the private business needs to be filled in order to make a profit. The state even pays for their job training, A few years back, a bill referred to in the media as "Jobs for Me", was pulling the wool over the public's eyes. Only 25% of the funding in that bill went to job training, which was barely needed because, through refundable tax credits, the public was already covering the costs of targeted sector job training.
    Private entrepreneurs not included in the public-private government's targeted sector take risks, but the risk-taking is removed from the State's targeted sector programs and passed on as a burden on the general public. It's outrageous. and has been since the public-private government was created in the 1970's. From what is reported on Bill Search, there was no opposition to the new Major Business Headquarters Expansions Program. That is why it is important to bring these issues up in respect to the candidates. I haven't found any coverage in the media on Major Business Headquarters Expansions Program. Maybe it exists but I have not found it.
Since I wrote the above, the status on the above Disqus post has reverted to Spam. I took another screenshot. If that changes, I will report, but historically it doesn't change.

Friday, September 14, 2018

Think Globally Act Locally Or How the World Government Is Being Advanced With a Little Help from their Friends- The Maine Legislature!

Marco Rubio really gets it. 

( this post will likely be rewritten and expanded upon later, with links added)

 Think Globally- Act Locally- that has been the purpose of the Maine DECD since it was established in 1987 with this statement in its findings:

§13051. Legislative findings (DECD)The Legislature finds that the State's economy is linked to the national and international economies. Economic changes and disruptions around the world and in the nation have a significant impact upon the State's economy. The rise of 3rd-world and 4th-world countries as manufacturers of commodities for mass markets and the gradual evolution of the national economy to a technological, informational, specialty product-based economy have significantly affected the State and its communities. [RR 2013, c. 2, §5 (COR).]
The DECD is the planning board for the FAME Corporation (Financial Authority of Maine) - a corporation chartered by special act of Legislation, in violation of Article IV Part Third Section 14 of the Maine Constitution which prohibits the Legislature from chartering corporations except for municipal purposes or if the object of the corporation cannot be achieved by other means. One might say that central management of the Maine economy cannot be achieved by means other than the State but central management is by definition a State purpose. By making an exception for municipal purposes, the Maine Constitution is excluding State purposes (central management). The Legislature seems to believe they can get around our Constitution by merely deeming any unconstitutional act they want to enact as an "essential government function"- so essential that Maine managed to do without a centrally managed economy (technically- totalitarianism) for 165 years before the Maine Legislature deemed that we cannot function without it.

 In 2017 the Maine Legislature enacted what can arguably be called a global economy tax with the  Major Business Headquarters Expansions Program which is classified as a governor's bill. Sponsored by Senator Troy Jackson, with no divided reports, cosponsored by Senator BREEN of Cumberland, Senator DOW of Lincoln, Representative FREDETTE of Newport, Speaker GIDEON of Freeport, Representative HILLIARD of Belgrade, Senator VOLK of Cumberland and no reported roll-calls

 Maine's New 2% Global Economic Development Refundable Tax Credit

To qualify for benefits, the corporation must fulfill these requirements, as found on the DECD website:
  • The company's principal facility, from which the applicant directs its national or global business activities, determined by the Commissioner of DECD, at time of application, are or will be located in the State of Maine;
  • The applicant employs at least 5,000 full-time employees worldwide, of which at least 25% are or will be based in this State;
  • The applicant has business locations in at least 3 other states or foreign countries; and
  • The applicant intends to make a qualified investment, within the State of Maine, of at least $35,000,000 to design, permit, construct, modify, equip or expand the applicant's headquarters
The amount that the Maine taxpayer is mandated to refund global businesses is only 2% compared to the 60% capital investment the public is required to refund under the Seed Capital Tax Credit. However, the 2%  refundable tax credit is not qualified by where that investment takes place. It is written as thus on the DECD website::
The Major Business Headquarters Expansions Program.
Beginning with the tax year during which the certificate of completion is issued or the tax year beginning in 2020, whichever is later, and for each of the following 19 tax years, a certified applicant is allowed a credit against the tax due for the taxable year in an amount equal to 2% of the certified applicant's qualified investment
I find this enactment quite disturbing, especially when one considers it as a progression following the enactment of Industrial Partnerships in 2015, which is nothing short of the State enacting more totalitarian control over everything via the economy.

The Impact of Kelo Vs New London On Maine's new Major Business Headquarters Expansions Program
One must also factor in the US Supreme Court ruling, Kelo vs New London. The dispute resolved by the U.S. Supreme Court in 2005 pitted the city and the New London Development Corporation against seven property owners who did not want to sell their 15 combined properties  In a 5–4 decision, the Court held that the general benefits a community enjoyed from economic growth qualified private redevelopment plans as a permissible "public use" under the Takings Clause of the Fifth Amendment. The development which was the cause of the dispute, never took place.The land remained undeveloped 10 years laterPrivate corporations authorized to exercise governmental rights of eminent domain by the Kelo vs New London decision are required to promise to employ 1000 or more persons. The global corporations empowered by Maine's Major Business Headquarters Expansions Program will enjoy governmental powers of eminent domain pursuant to the Kelo vs New London decision. The Maine Act is limited to closed military bases. The statutory charter for the state governed municipality of MRRA grants it the power of eminent domain. No one's private property rights are protected if these global corporations want it.Thanks to Governor LePage and the Maine Legislature.
It is establisjed precedence that benefits granted to the pubic-private government continually expand. The towns of Berwick and Sanford were granted Pine Tree Zone in a bill sponsored by Representative Beth O'Conner. Expect to see the Major Business Headquarters Expansions Program expanded to all Pine Tree Zones in the near future (I predict sometime in the next four years), putting all private property in the municipalities of Berwick and Sanford subject to taking by corporate eminent domain rights.

The percentage of private enterprise capitalization costs, financed by the public in the Seed Capital Tax Credit climbed from 30% when it was enacted in the 80's to 60% by the year 2011.

The much smaller 2% of the businesses capitalization costs granted as a refundable tax credit implies that the 2% is calculated on the corporations global capital investments, and not restricted to local investments in the state, thus Maine public funds can be used to create jobs anywhere in the world if my speculation is consistent with the reality. The evidence is as follows:

Although the DECD website identifies the credit as a mere tax credit, the statute identifies it as a refundable tax credit:
3. Refundable credit allowed. A qualified applicant is allowed a credit as provided in this subsection
.....2) Cumulative credits under this subsection may not exceed $16,000,000 under any one certificate.
A "refundable tax credit" means that if the holder does not owe taxes, the public owes the holder the amount of the credit.  Traditionally tax exemptions such as the Pine Tree Zone exemptions apply to businesses that create 250 or more jobs in one location. In 2014 Governor LePage introduced An Act to Improve Maine's Ability to Attract Major Private Investments "dubbing the bill “Open for Business Zones”. It was an expansion of the Pine Tree Zone tax credits exclusive to businesses hiring 1500 employees. The bill did not pass but it demonstrates LePage's thinking. A quick scan of Major Business Headquarters Expansions Program and its Summary confirms it is LePage's 2015 bill on steroids
 Transformational business expansion project. (2017)  "Transformational business expansion project" means the construction, development, rehabilitation, expansion, modernization or acquisition of any building, structure, system, machinery, equipment or facility in a military redevelopment zone, as defined in Title 30-A, section 5250-I, subsection 11-A, 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. "Transformational business expansion project" does not include an electric rate stabilization project, as defined in Title 10, section 963-A, subsection 7-A, or a project primarily involved in the provision of housing or retail sales to consumers.

In 2017, there were many changes made to tax privacy laws: §191. Confidentiality of tax records. It is a pattern that the public-private government uses its public side to gain access to public money and its private side to maintain the confidentiality of public records.

The military redevelopment zones are Pine Tree Zones.

In 2013, Douglas Ray, Legislative Liaison (lobbyist?) for the DECD cited wages as high as three times that of the average wage in Maine in Pine Tree Zone sectors:
Mr. Douglas Ray testimony before The Joint Standing Committee on Labor, Commerce, Research, and Economic Development March 19 2013
Of the 390 or so businesses participating in the Pine Tree Development Zone Program a vast majority, more than 300 are manufacturers, that's roughly 80%. These businesses have pledged almost a billion dollars in investment and anticipated payroll of nearly $850 million and 74 hundred jobs.
Jessica Hall reporting for the Portland Press Herald on the ICA Report of the effectiveness of the Pine Tree Zone Tax Incentives:
…. According to the ICA report, the total value of corporate incentives was divided by the total number of newly created jobs, which provides a “rate per created job” or information on what governments “paid” for one new job. Maine awarded total incentives worth $159,000 per created job for the period from 2010 through 2013, the report found. Portland Press Herald. Pine Tree Zones tax breaks costing state more than they deliver by Jessica Hall April 14 2014
 Mr. Ray tells that the companies have pledged to invest almost a billion dollars. 7400 jobs at $159000 per job, costs the state more than a billion dollars, $1,176,600,000.00 to be exact. The average wage calculated by Mr. Ray’s figures is $114,864 annually, more than three times the then median income in Maine. 

The price the state is paying for those jobs exceeds the private enterprise’s cost of hiring the employees by 38%. Even factoring in bureaucratic costs specific to the state there is enough of a margin to be an incentive for the private company to create jobs that do not contribute to the profit-making function of the private enterprise. If so, it becomes a contributing factor in the rapid rise of inflation since the 1970's when refundable tax credits (redistribution of wealth) was instituted across the USA. Inflation is a hidden form of wealth redistribution.
To put this into perspective:
  •  Municipal Home Rule was added to the Maine Constitution in 1969 granting municipalities local economic development authority. 
  • Federal BRAC closure rules give priority to local economic development conveyances with the state becoming involved only when there is no local redevelopment authority. 
  • In 1999 county officials of Washington County met with Maine's representatives in Washington D.C and came back with a special act of federal legislation that changed the BRAC closure rules so that the State was granted priority over local economic development conveyances for the Cutler Navy Base in Washington County.
  • In the ensuing process, the Maine Legislature violated Article IV Parts 13 &14 of the Maine Constitution when it chartered the military base as a municipal corporation serving as an instrumentality of the state. 
The Washington County Development Authority was the first municipal corporation, serving as an instrumentality of the state, created by the Maine Legislature. The last time I checked, WCDA is allocated an annual budget of zero dollars by the Maine Legislature and left to its own devices, To this date, it remains nothing more than a shell company used by the Legislature to get around federal guidelines and transfer the property at no cost to a private development corporation. Cutler selectman, David Eldrige and Machias selectman, Kenneth Bucket Davis were the two incorporators of the Cutler Development Corporation used as a private non-profit shell company, which was gifted the real estate assets on the Cutler military base by the Maine Legislature and then sold those assets to a private developer.
shell com·pa·ny
an inactive company used as a vehicle for various financial maneuvers or kept dormant for future use in some other capacity. Definition by Google  
The general BRAC (federal military base closure rules) terms of transferring the property at no cost require that the DOD can show that other transfer authorities paying fair market value were insufficient. The Cutler Development Corporation, a private non-profit corporation did not make a bid because it was prearranged as a public-private relationship for the State to acquire the property at no cost and then to give it to the private non-profit corporation (Cutler Development Corporation). Since the state made no money from the sale of the property there was nothing to be invested in economic development at the newly formed municipal corporation of Washington County Development Authority. Cutler Development Corporation sold the property to developers and the surrounding municipalities reportedly split the profits among them. However, while David Eldrige and Kenneth Bucket Davis were selectmen for the towns of Cutler and Machias, respectively, there is no mention of that relationship to the towns found in the articles of incorporation for the Cutler Development Corporation, only the names of the two private individuals.

The MRRA, located in one of Maine's wealthiest counties is reeling in taxpayer dollars while the former military base at Cutler in Washington Country, Maine's poorest county receives no annual budget from the state. Since WCDA is chartered as an "instrument of the state", it cannot collect municipal property taxes. Its sole means of support are rents from a few properties that were retained in its possession. After two developers failed to make the expensive-to-maintain commercial properties profitable, the commercial properties were gifted back to the base around 2015 but when the base submitted a request to the Legislature for a State bond for maintenance and development of the commercial properties, it was shelved by the Legislature until the next session.

Perhaps, one might say Major Business Headquarters Expansions Program could be used to help the economy at WCDA, provided the Maine Legislature should be so inclined, but one should also ask, what another sort of economy could 16 million dollars support? There is a proud grassroots economy in Washington county and local economic development organizations which existed at the time that the State arranged for itself to be the economic development conveyance to which the base assets were transferred. The key word in Major Business Headquarters Expansions Program is "transformative". Transplanting global corporation into a community inevitably means the corporation will dominate the entire region and the effect will be gentrification in which existing inhabitants are relocated. Does this serve the common welfare?

Does the Top-Down Economy serve the common welfare? 
OPINION: No! A top-down economy,  the policy of the public-private government since it was instituted in the 1970's, can never serve the common welfare. The ultimate end result of such an economic ideology is the governance of the world by global corporations ordered by the corporate grid. The only system which serves the common welfare is one in which every economic class and contribution is valued, The top-down economy justifies its plundering of the public wealth with claims that the top and the top alone serves the public benefit, if not the common welfare. Nothing is farther from the truth as is evidenced by statistics showing that since the seventies the rich have gotten richer and the poor poorer. It is no wonder that the middle is vanishing when the Maine Legislature defines "quality jobs" by "higher than average" pay, rewarded with a multitude of freebies including public subsidization of payroll taxes, which are, of course, higher than average payroll taxes. The phrase "quality job" used by the State contributes to a class society culture which reflects negatively on all other jobs, detrimental to the common good, in which every contribution to society deserves respect and recognition. It is not so inappropriate a term when defined by the individual for him/herself. A quality job, in that context, for this individual, is one which provides an opportunity to grow.
Tax exemptions transform a refundable tax credit into a cash refund, why not just call it a Reversible Tax, in which the holder taxes the public instead of the other way around? Speculatively, the 2% refund appears to be applicable to corporate global capital investments for reasons stated herein.

The refundable tax credit is limited to 16 million dollars, representing only 2% of the total investment. (Co-incidentally 16 million is the same amount of money which the Maine taxpayers had to cover in the Cate Street Scandal.)

The initial justification for creating the public-private government was because there was a need to create capitalization opportunities for small businesses located in Maine. According to the Beldon Hull Daniels Report, commissioned by the Maine Legislature in 1984, at that time the growth of small businesses hiring less than 100 employees, exceeded that of the national average but small businesses have difficulties finding capital, which large businesses do not. The idea behind the enabling legislation for the Maine Capital Corporation was to find a way to increase capital available to small businesses. We have come a long way from that. The language below, particularly the sentence: "The investments and activities of a qualified applicant and other entities that are members of the qualified applicant's unitary business must be aggregated to determine whether a qualified investment has been made "  interprets as Maine public funds can be used to capitalize jobs created anywhere in the world.

When one follows the transformation of the policies of Maine's public-private state, established under Governor Longley in the 1970's, a transformation becomes apparent, evolving from the redistribution of public money to private capitalists required to be located in the State of Maine to Governor LePage's new 2017 version wherein owners of the means of production, receiving public capitalization, are required to be spread across the globe and other states. The private partner of the public-private government is no other than a global corporate mafia extracting their fees from the people with a little help from the progressively totalitarian State, mandating global corporate takes as taxes on the general public.
I "Qualified investment" means an investment of at least $35,000,000 to design, permit, construct, modify, equip or expand the applicant's headquarters in the State or, for full-time employees based in the State, to train, retrain or educate them, or pay their student loan debt. The investments and activities of a qualified applicant and other entities that are members of the qualified applicant's unitary business must be aggregated to determine whether a qualified investment has been made. A qualified investment does not include an investment made prior to the issuance of a certificate of approval or after December 31, 2022. Major Business Headquarters Expansions Program
In Amoco Corp. v. Comm'r of Revenue, 658 N.W.2d 859, 865 (Minn. 2003), the court held that a business is unitary when the operation of the business within the state is dependent upon or contributory to the operation of the business outside the state. USlegal
Definition of aggregateformed by the collection of units or particles into a body, mass, or amount collective: such as composed of mineral crystals of one or more kinds or of mineral rock fragmentsc taking all units as a whole 
Global corporations will not locate anywhere in Maine but only in Pine Tree Zones or similar zone where they have tax-exempt status. Boothbay does not have Pine Tree Zone status. Midcoast Regional Redevelopment Authority, a municipality governed by the State, has Pine Tree Zone Status. MRRA does not benefit regional development. All of the development generated by MRRA takes place within the boundaries of its own municipality. The fact that the MRRA is a special zone with its own special benefits stops it from becoming a regional development influence. If that were not the case, one might see a growth of cluster industries in the entire region but as it stands. other municipalities cannot compete with the special benefits granted to the town of MRRA via its Pine Tree Zone status.

1500 employees is a large size for Maine but 1500 people is a very small faction of our population which directly benefits from a potential tax of sixteen million dollars paid to a private corporation by Maine taxpayers to make those jobs happen. We have all heard the trickle-down effect argument but seldom mentioned are the benefits for the owners of the means of production, especially if the 2% climbs as did the Seed Capital Tax Credit ( from 30% to 60%).

SUMMARY Major Business Headquarters Expansions Program
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.