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

Sunday, September 29, 2013

Those who Benefit from the Closure of St Andrews Are Those Who Benefit From Relocating Boothbay's Retirement Community


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The Boothbay Peninsula's Emergency Room will close its doors on October 1st.

When the decision was first announced in the Boothbay Register it was stated that it was not a decision based on money. If memory serves me right, a claim was made that it was about quality of service. Since then the story has been perpetuated by some that St Andrews was not making a profit, with others claiming that it is profitable.

I asked the opinion of someone familiar with the inner circle. He claimed that the appearance that St Andrews did not make a profit was created by the way that medicare presents bills. I believe he said it was in the year 2007 that all the books had been closed when after that fact medicare presented a sizable bill. This gave the appearance that St Andrews was not making a profit but that since then the hospital had caught up on those payments.This is a reasonable explanation for a controversy over whether the hospital is or is not profitable, which should be simply a matter of numbers- not a matter of controversy.

St Andrews emergency patients will now have to be taken by ambulance to Miles Hospital in Damariscotta. With the closing of its emergency room St Andrews will lose its critical access designation. The number of critical access beds in Lincoln County will be reduced from 63 to 25. Judy Stone , a writer for Scientific American has written passionate and well documented articles about the situation to which the links are provided below. The general explanation that I have heard usually involves profit motifs associated with Maine Health but they never really add up. Nothing adds up if the parameters remain within the health care industry. There is no sense to it unless one removes those parameters and asks "Who benefits? ". There is only one clear answer to that question and it is a broad and general one. Whoever benefits from the removal of St Andrews Hospital from the Boothbay Peninsula is whoever benefits from the relocation of its retirement community .

Boothbay is the grayest town in tthe grayest county in the grayest state in United States and it is losing it's hospital. Already we are seeing articles saying that "retirees are moving" although there is no substantiation given for such claims, it is a reasonable assumption to make. Removing the hospital facility and the exodus of the retirement community logically go hand in hand.

The Boothbay Peninsula is like a garden. It is beautiful where ever one goes, surrounded by the ocean. Boothbay Harbor has an Opera House, Boothbay has Bigelow Labs, a world class botanical garden and the latest news is that the Boothbay golf course is about to be transformed into a "world class golf course"

"World Class" is one of the favorite buzz words in Augusta where Maine's elite class of social engineers hold court. When Governor Lepage granted Tempus Jets tax exemptions via the transformed Pine Tree Zone legislation, he called it a "world class" aviation company. When Governor Baldacci came out as a loyal deciple of the social engineer Richard Florida and instigated the "creative economy" , it soon became clear that our Governor was not here to serve the people that elected him but to import a better (wealthier) class of people to Maine. The parameters of Richard Florida's definition the "creative class" inevitably includes wealth. Governor Baldacci made Richard Florida the center of his "creative class" economic policies.

In the beginning there might have been a modicum of intent to benefit the local economy of Maine but that has since fallen by the way side. Putting all of the pieces together including Governor Lepage's love affair with the small private jet industry, the designs of the power elite who are using Maine State Inc* to extract public money into their own hands is to recreate Maine as a "world class" Bilderberg Gardens ! The Boothbay Peninsula is a perfect location for the playground of the global capitalists if only the pesky retirement community could be "nudged" into moving by removing the privately owned St Andrews Hospital, now under the hood of Maine Health.  Maine Health can be bought- can't it? Can't everything be bought by those who have siphoned off the public's wealth into their own control? The greatest beauty is to be using the fruit of the labor of the class being relocated to relocate them- and the legislature has neatly arranged that with a full package of "instrumentalities" for transferring public wealth into the hands of private corporations and capitalists- preferably "world class" ( globalist) capitalists !

In the past two years Maine's State Inc has made a grand leap forward into the "world class" elitism of global capitalism. That's where the "big money" and "world class' power dwells . The power elite of Maine has become infected with the "We must be Gods" disease of global capitalism. When the fundamental transformation of the Pine tree Zone "moved silently" through the legislature" with "very little fanfare", marking an new era of power for Maine's man made Gods. Once their ability to redesign the state of Maine might have been limited to relocating poor rural communities and transforming those locations into the Gardens of Bilderberg, but now they can go into any community and drive out the populous to make way for the "creative class' - that class of people holding a pantload of globalist wealth. The "creative class" needs private jets (just like in Washington D.C.) and world class play grounds- why the Boothbay Peninsula is perfect ! How do we nudge the local population to re-locate?

Just as once would-be Gubernatorial candidate Steve Woods proposed depriving 108 Maine towns of infrastructure and transportation funds in order to encourage the populous to move to urban centers, health care can also be used as a tool of manipulation in the hands of the Bidlerberg set, in which our power elite in Maine strives so desperately to be included, as evidenced by the creeping linguistics and policies of  globalism that are being incorporated into the entrenched structure of Maine State Inc and it's associated government by tzars (called "quasi" in pc language).

Every advancement of the new state order has been accompanied by claims of being for "the public benefit". While my theory is only speculation, if one applies it to what is taking place on the Boothbay Peninsula, it is clear that "public" is just code for "the targeted sector". The general public and existing populous of Maine has never been included in Maine State Inc.'s definition of "public". One needs only to examine what is in the "Extended and Improved Seed Capital Tax Credit" to substantiate this conclusion. The only measure by which this direct transfer of public money into the pockets of private corporations and capitalists can said to be "improved" is by the interests of the latter. For the general public the transfer of the fruits of their labor into the bank accounts of the legislature's "targeted sector" just got a mega-dose of steroids.

As Richard Florida pointed out, with the technology revolution, it is no longer necessary for high paying jobs to be located in urban centers, and so Florida suggested, communities need to compete for the "creative class". Taking this form of thinking to its ultimate conclusions, why should a beautiful location like the Boothbay Peninsula be allowed to remain in the hands of those of ordinary means? Such beauty should be reserved for the wealthiest. Let the rest of the people be concentrated in urban communities. The governing elite of Maine has an ongoing love affair with China and China is implementing a massive rural relocation program- why not Maine? Any community can be "nudged" into relocating at the hands of those who have gained control of concentrated wealth. Any one can be bought! Things can be arranged to suit the desires and purposes of "the targeted sector".

NOTES AND RESOURCES


* "Maine State Inc" is a term I use to encapsulate the deeply entrenched network of corporate "instrumentalities of the state" chartered by special acts of legislation ( a violation of Article IV Part Third Section 14 of the Maine State Constitution) - all part of Maine's top down "economic development policies"

Article's by Judy Stone, Columnist for Scientific American A plea to the St. Andrews Board An Emergency Room’s Closure: A Community’s Betrayal
Breach of a Community's Trust By Judy Stone

The Mystery Of TideSmart Global Stimulus Funding and the Vanishing Media Coverage A little mystery with Steve Woods, would be social engineer, smack in the middle of it

Friday, September 27, 2013

University of Maine's New "Confucius Institute" Creates Global Partnership with Dongbei University of Finance and Economics, China

The University of Maine, which already sponsors a course in Marxist and Socialist Studies which can be taken as a minor along with any major is now using taxpayer dollars to create a new institute handily called the Confucius Institute, as if it were about ancient Chinese wisdom, which may be partly true but also significant is that it is in partnership with the new fundamentally transformed China and Dongbei University of Finance and Economics in Dalian, China which includes such departments as The Global Institute of Management And Economics.


USM Confucius Institute
USM is partnering with Dongbei University of Finance and Economics in Dalian, China to host Maine’s first Confucius Institute (CI). From the website of the UniversityOf Souther Maine, Confusius Institute


Contemporary China with it's polluted lands and its plans to relocate millions of the rural populous in order to create a home grown consumers market has very little resemblance to the philosophy of Confusions- but it makes a nice sounding name- doesn't it?


In other words Maine taxpayer dollars will be used to indoctrinate the youth in Chinese inspired global capitalism, which is already at the heart of Maine's economic development policies, which has also established a Marxist styled state owned means of production at the University of Maine called the University of Maine Advanced Manufacturing Center, financed with a grant from Maine's public charity for capitalists and private corporations, The Maine Technology Institute, which doesn't get charged overhead by the state's manufacturing center because that would be like the 'state paying the state" as quoted from this Maine Biz Article.
For projects that have received MTI funding — around 25% of the UMaine work — the university charges no overhead expenses as "it's basically the state paying the state," Belding says. Many of those projects, he says, come to the center for development work before applying for an MTI grant and have continued support after.
The rhetoric promoting the state's Advanced Manufacturing Center is a thinly veiled admission that it exists to produce prototypes with student labor to the advantage of global capitalists who will have the products manufactured in global low wage labor markets such as China and Thailand. TexTech is cited as the poster child of Maine's economic development intitaitive according to this interview by Alana Hinsey of MaineBiz and TexTech owns manufacturing facilities in China and Thailand. In turn Textech has recieved charitable donations on at least six occasions from Maine's non-profit public charity for private corporations and capitalists,- The Maine Technology Institute - (according to MTI's website), making TexTech a candidate for poster child for Global Capitalists Org, as well as the poster child for Maine's State Inc's "targeted sector" economics.
Over the ensuing decades, particularly in the 1990s when massive investment poured into China, the families of CCP bureaucrats utilised political power and links with foreign capital to transform themselves into a new property-owning capitalist elite. CCP-connected entrepreneurs, executives, outsourcing contractors, import and export traders and professionals have emerged as the junior partners of major transnational corporations in ruthlessly exploiting the working class."
World Socialst Website -Chinese regime amends constitution to protect private ownership- 2004
Thanks to the Small Enterprise Growth Fund and it's statutory exclusion from a general law which provides that those in public service cannot profit from their positions, Maine is all set to go to follow the Chinese model.


Many such concerns stem from the CI's relationship to Chinese Communist Party authorities, giving rise to criticisms about undermining academic freedom at host universities, engaging in industrial and military espionage, surveillance of Chinese students abroad, and attempts to advance the single-party state Chinese government's political agendas on controversial issues such as Tibet and Taiwan. Additional concerns have arisen over the institutes’ financial and academic viability, teaching quality, and relations with Chinese partner universities.[1] As a result of such criticisms, administrators at several institutions, such as the University of Melbourne and University of Chicago, have opposed the establishment of a Confucius Institute. Criticisms of Confucius Institutes Wikipedia
The University of maine also has a campus located on Maine State Inc's new city state The Midcoast Regional Redevelopment AUTHORITY a new progressive innovation of the Maine State legislature- a municipal corporation (local governance) that serves as "an instrumentality of the state" .
The Maine State Constitution
Article VIII.,Part First, Education.
Free For The Sharing!
Section 1. Legislature shall require towns to support public schools; duty of Legislature. A general diffusion of the advantages of education being essential to the preservation of the rights and liberties of the people; to promote this important object, the Legislature are authorized, and it shall be their duty to require, the several towns to make suitable provision, at their own expense, for the support and maintenance of public schools; and it shall further be their duty to encourage and suitably endow, from time to time, as the circumstances of the people may authorize, all academies, colleges and seminaries of learning within the State; provided, that no donation, grant or endowment shall at any time be made by the Legislature to any literary institution now established, or which may hereafter be established, unless, at the time of making such endowment, the Legislature of the State shall have the right to grant any further powers to alter, limit or restrain any of the powers vested in any such literary institution, as shall be judged necessary to promote the best interests thereof.


Progressivism is based on the idea that a constitution should continually be adapted to the times. Progressives utilize the cover of reputations established under other names for other purposes- thus the School of Global Management and Economics (global capitalism) calls itself "The Confucius Institute".

The General Henry Knox Museum in Maine- honored media hero's of the left for many years at their "gala findraising events" until the tradition  appears to have  ended in 2011 when controversy arose over  honoring the Washington Bureau Chief of Al Jazeera . The General Henry Knox Museum should be a name associated with conservativism, which is based in preserving the constitution as written by our founding fathers but the political left bureaucrats of the General Henry Knox Museum excluded all but far left media stars from their list of honorees. I point this out to highlight the tradition among "progressives" whose aim is to change governments and traditions to suit the whims of the times- use names and organizations that represent to the public those very traditions that progressiveness intends to over throw.

By it's very nature what ever progressivism is, is forever subject to change. Once we thought of it as being rooted in Communism but both Communism and Free Enterprise are just "instrumentalities" of the real goal of contemporary progressivism, which can best be described as the totalitarian world view of global capitalism- which , I submit , is the real purpose behind the "Confusious Institute" as perpetuated on a global scale by the Chinese Government.

It is not a secret that the organization with which Maine State Inc is partnering with through it's own "instrumentality of indoctrination"  - The publicly funded University Of Maine -Is in fact Dongbei University of Finance and Economics in Dalian, China, but in Maine our compliant media uses the politically correct term in every headline, - it is The Confucius Institute"  I searched  the term "Dongbei University of Finance and Economics" with the term "Maine" to find my only own blog post was relevant to both terms. Then I searched "Confucius Institute" and found many stories in Maine's main stream media. I clicked on :


Maine leaders laud wisdom of Confucius Institute

a Portland Press herald Story with the by line:
Establishment of the language school at USM is seen as a useful way to increase ties to China and its export markets.

I searched for "Dongbei University of Finance and Economics in Dalian, China" in the above article but nothing was found. The only hint is in the phrase "export markets" - but whose export markets are we talking about?
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Wednesday, September 25, 2013

Transference of Wealth from Corporate Welfare to General Welfare

                                                           My Latest Political Art Work

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Saturday, September 21, 2013

State Capitalism VS Crowd Funding

I am not a professional journalist or researcher. I work independently as an avocation rather than a vocation in part because I feel that allows me to retain my freedom in expressing what I have to say. For instance "incentives" and "bribes" mean the same thing in the way that they are being implemented by the state but If I were employed by another organization I might be encouraged to use the word "incentive" instead of "bribe", but to my point of view "bribe" is closer to the truth than "incentive" which rings as though there were a fair exchange involved. In the case of usage by Maine State Inc- there is no fair exchange involved. The only thing the taxpayers are getting in exchange for the transference of their hard earned dollars is rhetoric about job creation but if the article in Bangor Daily News by the Center for Public Interest Reporting points out anything, it points out that there is no evidence that jobs are being created by the Pine Tree Zone redistribution of public money to private corporations. One has to wonder if, when Mr Levesque, head tzar at the MRRA, promises more "state backed loans" to Tempus Jets, it doesn't mean that the process begins with promise from both MTI, which will match an investment amount as a charitable donation granted to private capitalists, and the Seed Capital Tax Credit Program, which will sign the tax payers up to cover the private capitalists investment to the tune of up to 60%.  Speculatively speaking, the business so provided with such state backed promises, can use such promises to procure the loan that sets the whole process in motion. Now that the Seed Capital Tax Credit program has been "improved" by removing the requirement that the entrepreneur bring capital into the state, the lending institution, can be a Maine based institution in which other Maine borrowers who are not so showered with gifts of taxpayer money have to compete for loans against the favored ones of Maine State Inc. This is all pure speculation, but in a game in which those from whom wealth is being extracted are not allowed to know how their wealth is being used, thanks to tax privacy laws shielding the recipients, speculation is not only fair but one of a few sparse tools that we the people actually have on our side. As an independent I can grant myself permission to speculate based on what we can know.

Tzar "The term is derived from the Latin word Caesar, which was intended to mean "Emperor" in the European medieval sense of the term - a ruler with the same rank as a Roman emperor, holding it by the approval of another emperor or a supreme ecclesiastical official (the Pope or the Ecumenical Patriarch) - but was usually considered by western Europeans to be equivalent to king, or to be somewhat in between a royal and imperial rank." - Wikipedia

The MRRA is a municipal corporation chartered by the Maine State Legislature. The governing authority of the MRRA is not elected by the inhabitants of the municipality but is appointed by the state. Mr Levesque is given the title by the state of "Director of the "Authority" but his position at the city state of the MRRA also meets the definition of a tzar. Mr Levesgue rules by appointment over a municipality- not by the will of the inhabitants of the municipality.

When my father started our business back in the 1950's a government backed loan meant that Dad got a loan from a bank and the government co-signed it. There was never a use of public money since the loan was borrowed from and paid back to the bank. Public money only came into the picture if the loan defaulted and that would be easy to track and to know when the ratio between loans paid according to terms and defaulted loans reached an unacceptable limit for the use of public money.

From that point forward my parents capitalized the growth of our business with self generated capital- or as they say, sweat capital. It was a long and difficult process that required exceptional perseverance. When the business became successful, Dad complained that he still could not get a loan from a bank and speculated that it was because he was not asking for enough money, that he would have more success if he were trying to borrow ten times as much. Today, after years of researching the economic policies in place in the state, policies generated by our government that have a far reaching affect on all aspects of our economy, I believe that Dad was right in his speculations.

Fortunately the economy remains much larger than Maine State Inc. There still exists a private economy with new venues emerging via the internet- one of the most prominent being crowd funding. Crowd  funding capitalization impacts the economy in a completely different manner than the redistribution of wealth as practiced by Maine State Inc and their ilk. Maine State Inc  chases freshly printed federal money, which has nothing to back it up - not gold and not productivity. There are those that pursue whatever kind of project as is currently being financed by the federal government and in so doing they become "instrumentalities of the federal government" which is currently on an unsustainable course according to the CBO, and many others.

Conversely crowd funding capitalization is based on the ability to produce .Crowd funding transforms consumerism into entrepreneurial-ism, a form of "conscious capitalism" that might instead be called "conscious consumerism" It's an interesting dynamic compared to what is going on in China with the government relocating rural populations, bribing them with free apartments and money in a goal to turn them into a home grown consumers market. Instead crowd funding turns consumers into a new breed of private capitalists, a breed that is not motivated by profit, at least not in the case of crowd funding that is not an investment. ( I understand there are new forms emerging that are for investors). If Americans are known for their generosity, always the first to come to the aid of those struck by natural disasters and other causes, then crowd funding is quintessentially American. It is based in the spirit of helping others to succeed.If the thought can be kept in the public's mind that genuine economic revival has to emerge from all sectors of the economy, not just one subset determined by the "authority" of the state,  then crowd funding becomes American disaster relief for America's own economy.

Because crowd funding is often capitalization which is not profit motivated, it has never been more true that when Maine State Inc and their ilk transfer wealth from general taxpayers to "targeted sector" private capitalists, it drains the capitalization from the rest of the economy into the pockets of government selected privately owned businesses and private capitalists. The private capitalists  that make up the other 90% of the Small Enterprise Growth Fund have long been called "high growth capitalists", which in practice means capitalists seeking to make high profits in a short amount of time, generally expecting an "exit strategy" - code for selling the business - within seven years. It used to be that the high growth capitalist also took a high risk but Maine State Inc has transferred much if not all of that risk to the general taxpayer who sees no share of the profits, being that the general taxpayer is an involuntary investor in the SEGF, accounting for 10% of SEGF's investment with terms of agreement arranged by the state legislature, providing that the taxpayer's investment will always "roll over" in the manner of an investment in a non-profit organization.

So crowd funding capitalization comes from disposable income in the pockets of the people. It does not qualify as a business expense, is not a deductible. As Maine State Inc chases after the worthless paper money printed by the federal government and gives that money to it's "targeted sector", the amount of disposable purchasing power in the pockets of the populous shrinks down another notch with every dollar that Maine State Inc takes from the fed.


The taxpayers are non-profit capitalists when public money is used to "invest" in Maine's Small Enterprise Growth Fund. In the case of the SEGF , the taxpayers have no choice. Conversely, when the public functions as non-profit capitalists through crowd funding, they do so of their own choice investing (spending) in the projects of their choosing.

While Maine State Inc has a very narrow range of businesses that are the beneficiaries of the redistribution of wealth as managed by the state, crowd funding benefits the full range of business activity, as there are many different venues of crowd funding, each with its own "targeted sector".

Crowd Funding and venues like Etsy promote a hands-on business owner involvement, while the new "improvements" recently added to Maine's Seed Capital Tax Credit, take the capitalist a few steps further away from a hands-on business involvement: The "Extended and Improved Seed Capital Tax Credit",  changes the requirement that the operation of the business must be the full-time activity of the owner  to  "a substantial professional activity of at least one of the principal owners, as determined by the authority". Another "improvement", we are told is that the new Seed Capital Tax Credit changes the requirement that the operation of the business must be the full-time activity  of the principal owner to a "substantial professional activity of one or more individuals who are not managers of the private venture capital fund, as determined by the authority". In other words the Seed Capital Tax Credit is being "improved", we are told, by moving toward mutual investment groups, which means that the profit motive becomes the priority value over all other values encapsulated by the term "conscious capitalism", as that is how motivations trend when the owners of businesses become divorced from the operation of businesses and this is the direction in which the "authority" is taking Maine- all for "the public benefit" of course !

In exchange for a perpetual transference of the public money into the bank accounts of private corporations and capitalists , the legislature gives the people absolutely nothing- unless one counts the debunked "creating jobs" explanation. A successful crowd funding project usually creates jobs as well and the person making the donation receives a reward. Why does the Maine state legislature give the people nothing in exchange for extracting their wealth and depositing it into the banks accounts of the legislature's "targeted sector"? Because it can ! Not constitutionally -but the Maine State legislature is no longer governed by the Maine state constitution.


Taking out the supply of federal funny money that Maine State Inc actively pursues, Maine State Inc and Crowd Funding are competing for the same capital resources, one through the method of government mandates and state controlled means of production,  and the other through free will. The state will win in the end unless the people do something to stop the drain of the people's wealth by a government that is continually grabbing more than its "fair share" of the ownership and control of the means of production and fundamentally transforming a free enterprise culture into something all together different.






Sunday, September 15, 2013

MRRA and Tempus Jets Drain More Money From The TaxPayers Via The Pine Tree Zone.

Recently Maine's newest city state, The Midcoast Regional Development Authority, announced its latest win in the national competition among the states to procure corporate job growth via innovative systems of bribery designed to redistribute wealth created by the general public into the hands of private corporations. The prize is Tempus Jets, an aviation company servicing the needs and desires of the private jet owing community. The aviation industry is a well chosen target of the Paul Le Page administration, serving an additional goal of attracting a wealthy upper class to Maine, a class which Maine's ruling class aims to grow, as laid out in the "Creative Economy" template of professional overlord Richard Florida, the social engineering guru followed by Maine's former Governor, John Baldacci. Richard Florida designates this class as "the creative class", of which wealth is a definitive criteria.

Tempus Jets was procured for Maine via Pine Tree Zone incentives, However, the online promotional text published by the MRRA makes no mention of and grants no credit to Pine Tree Zone incentives in the decision of Tempus Jets to relocate to Maine. Instead it gives the clear and obvious reason why an aviation company, any aviation company, would find a former naval air station as a reason to relocate their real estate :


BRUNSWICK LANDING, Maine – The Midcoast Regional Redevelopment Authority is pleased to announce that Tempus Jet Centers, LLC (Tempus Jets) of Newport News, VA , will relocate its FAA Part 145 Aircraft Repair Station and VIP interior completions business to Brunswick Executive Airport (BXM) in the east bay of 166,355 s.f. Hangar 6. Due to the size and excellent material condition of the hangars at BXM, Tempus Jets will be able to expand its aircraft repair and completions business to include large commercial aircraft from Boeing and Airbus.....Scott Terry, CEO of Tempus Jets added, “we are excited to have discovered such a business friendly environment that includes the unique infrastructure that we require in order to effectively grow our maintenance, repair, and interior completions product line


Tempus Jets was lured to Maine, or so we are told in media publicity, with Pine Tree Zone incentives which includes 100% corporate tax exemption,, 100% personal tax exemption and 80% exemption on its payroll tax. There was no need for such a tax payer dollar giveaway when Maine's brand new city state, the MRRA  is holding such a valuable card to the aviation industry. Is the heat generated by the competing states becoming so fierce that a Governor will stop at nothing to win the prize?

As I was researching this post, I discovered to my pleasant surprise that The Maine Center for Public Interest Reporting has a story published in the Bangor Daily News that dares to mention the words "corporate welfare" in the title no less ! Is the Pine Tree zone tax break corporate welfare?
This article tells us that:

The law that created the Pine Tree zones states that a business can qualify for the program only if “it demonstrates” that without the tax breaks it could not expand or start a new business.
This means that “but for” the tax break, the business would not add new jobs and make investments in the state..Is the Pine Tree zone tax break corporate welfare? Bangor Daily News Sept 12 2013

Can we really believe that an aviation company would not expand to such tailor made aviation real estate unless it receives generous charitable donations from the general tax payers? Whatever happened to the old real estate mantra - It's "location, location, location ?

If a private consumer has two online coupons for a purchase on the internet and tries to use both coupons at once, it is generally the case that it cannot be done- not so with the state. I have never run across a limitation in any of the economic "instrumentalities of the state" statutes, that prohibits the use of multiple "coupons," so to speak. which is to say that a business can participate in several of the states "discount and or refund and or gift programs" simultaneously. (as far as I have been able to determine )

By the MRRA's own words, Tempus Jets does not qualify for Pine Tree Zone benefits. - But now that it has them, there is no reason why Tempus Jets can't also apply for a Seed Capital Tax Credit since the Seed Capital Tax Credit is a "refundable tax credit"- meaning that if the recipient does not owe any taxes, then the taxpayers owe the recipient for up to a 60% refund of their investment- AND- if Tempus first applies to Maine's public charity- The Maine Technology Institute - then Tempus Jets can have it's original  investment dollars matched and potentially use the total sum of their own investment plus an equally matching charitable donation from MTI (funded largely by state and federal tax payers)  as the investment amount qualifying for a Seed Capital Tax Credit of up to 60% of their investment. That means thanks to the charity of MTI- Tempus would now qualify for up to a 120% refund of its original investment from the Maine state taxpayers via the Seed Capital Tax Credit. _ the list goes on. The main stream articles praising this new win for the state make references to more incentives to come for Tempus Jets.
Levesque said Tempus Jets is so far using only the Pine Tree Development Zone incentive. It could later seek other incentives, such as state-backed loans or federal development grants and credits- Portland Press Herald

"State -backed loans" sounds so copacetic ! A state backed loan- should merely mean the state co-signing the loan- but why would a "world class company" - to use Governor Lepage's words- need to have the state co-sign a loan? If the "three legged financial stool" a phrase used to identify the complete financing package of MTI, The Capital Seed Tax Credit and the SEGF, in this MaineBiz article, is used, and if the initial investment capital is borrowed, this could then translate as "government backed loans" in the new linguistics of targeted sector economics practiced by the state of Maine.

Federal development grants and credits are coming from a bankrupt and spendaholic federal government that prints worthless paper money at whim. Money redistributed to Tempus Jets will have a kickback effect on the value of money held by everyone. The shrinking dollar is a direct result of  worthless money distributed by the federal government  to the states and thence to the chosen ones such as Tempus Jets. The new chained consumer index that the Maine state legislation has elected to replace the consumer price index will serve to statistically hide the shrinking dollar caused in no small degree by the economic "development" policies of Maine State Inc and the national state competition the feeds the redistribution of the fruits of the American people's labor to private corporations in the USA and abroad.

We rarely see headline news stories about businesses receiving Seed Capital Tax Credits because the secrecy of the recipients is protected by Maine's tax privacy laws. We never see a complete total of the tab that tax payers have to pick up for the "public benefit" of creating  "targeted sector" jobs in Maine.

Mr Levesue's words may sound pleasing to the uninformed and unsophisticated but are possibly nothing more than rhetoric to cover the intentions to give Tempus Jets the keys to the state's full tool box for redistributing Maine and federal taxpayer dollars.The full impact of the tool box package is hidden in its parts. Each part is presented separably to the public, but astute examination reveals that in practice the parts are intentionally designed to work together, as we see acknowledged in the Maine Biz article cited above, and in other news stories about the great success of Maine's targeted sector economic policies.


The Portland Press Herald story also includes the following quote from Mr Douglas Ray, spokes person and legislative liaison for the DECD
("legislative liaison" likely being code for tax payer funded lobbyist for the taxpayer funded Maine State Inc, which serves the "targeted sector" ONLY !)
Ray said the department has already certified Tempus Jets as eligible for the state's Pine Tree Development Zone designation, which provides corporate and sales tax exemptions to companies that create "quality jobs."

Those jobs are defined as having salaries and benefits that are more than the per-capita average in the county where the company operates. In Cumberland County, that means total compensation of greater than $45,147 a year.
The Pine Tree Zone has come a long way from its beginnings in 2003-4 as a program designated for high unemployment , low income areas, unless re -gentrification was always the intent- in other words driving out the poor and the middle classes to be replaced with an economic sector whose existence is dependent on  artificially created "quality" jobs  providing above average wages. ( links to a very well considered article by Murray N. Rothbard) We all like to have money but a free enterprise system, and the American way of pulling one's self up by one's bootstraps doesn't work within feudalism, which is what remains when the middle is excluded- the system which is being created by the manipulations of Maine State Inc.

The following quote from the BDN article highlights both the heat between competing states and the original intent of the Pine Tree Zone legislation:

Pennsylvania and Michigan, for example, had aggressive business incentive programs. They went by different marketing-savvy names, such as Renaissance Zones, and were known generically as enterprise zones. They were designed to attract private investment to distressed areas within a state or a large city. The idea was to lower a business’s expenses, such as taxes, if they created new jobs.

Bangor Daily News Story Is the Pine Tree zone tax break corporate welfare?  Sept 12 2013
In 2009 -10, the Pine Tree Zone was expanded to include the whole state as it "moved almost silently through the legislature" , and as such removed any advantage for low income high unemployment areas for which it was originally intended.If the intent was to expand it to the whole state, then all that would have been necessary would be to repeal the Pine Tree Zone and enact lower taxes for all businesses in the state. Then there would be no need for high paid bureaucrats that function as an unelected government by tzars, head quartered in "municipal" centers of state government such as the MRRA. Instead the Pine Tree Zone was transformed into another general "instrumentality of the state" in a complete toolbox of  instrumentalities whereby the tzars can pick and choose who gets and who just gets to pay.

Maine has two welfare systems - the general entitlement systems about which the general public is relatively cognizant and the corporate welfare, which is cloaked in layers of secrecy and spun as a great asset for "the public benefit" by the media- or at least it has been in recent years but reports generated by the Maine Center For Public Interest Reporting are starting to have an affect on general media reporting. The two welfare systems taken together are greater than the sum of the parts. The middle class foots the bill for the freebies- there being few if any "incentives" for the middle class, with most of Main Street being statutorily excluded from benefits and services of Maine's Department of Economic and Community Development (The DECD) through excluding the general retail sector. The general welfare class is a slave class to whom the state distributes whatever goods and services it needs  to keep the slave class in its place and to keep their votes in place. Like many internet venues it's easy to get in and very difficult to get out. The slave class does not receive benefits in the form of capital for improving its own economic possibilities. Instead the system is designed so that if a person who has become dependent on entitlement programs makes a move toward improving their economic independence, they have to do so at the risk of losing that which has become their underlying security. This is parlayed as a form of "humanitarianism" by the proponents of expanding entitlements for the "people",

The Pine Tree Zone was originally proposed for areas of low income and high unemployment- to give entrepreneurs incentives to invest in those areas- by expanding the Pine Tree Zone to the entire state, the original intent of the Pine Tree Zone was obliterated. There is no longer a special incentive for entrepreneurs to invest in low income high unemployment areas. The incentive is the same everywhere but not for every one. It is only for those chosen as winners by the state. If it were for everyone - it would simply be low taxes for all businesses in all of Maine.

Under the Baldacci administration, more than 300 businesses have been certified for Pine Tree tax breaks since 2003. And although Republican Gov. Paul LePage has said nothing publicly about the program, his administration approved 37 businesses for the program since 2011, his first year in office. Bangor Daily News Sept 12, 2013
Sen. Chris Hall, D-Bristol and Rep. Peter Mills, R-Cornville Letter To Sun Journal Expressing Concerns About Pine Tree Zone Legislation 2003
Pine Tree Zone Legislation 2004
Bangor Daily News Article About The Pine Tree Zone 2006
Central Maine Power Targeted Pine Tree Zone Rider On Rates 2004 amended 2013
Bangor Daily News Article On Maine Public Service's  Reduced Rates for Business with Pine Tree Zone Certification 2004
Bangor Daily News Story Is the Pine Tree zone tax break corporate welfare? Sept 12 2013

Portland Press Herald Article: State Can't Show Pine Tree Zone created jobs 2012

Wednesday, September 4, 2013

Big Money, Redistributed Wealth and Legal Opacity Make For Happy Bed Fellows!



TWEET THIS!  http://goo.gl/5l9WdF



Section 2 of the Home Rule Amendment ( Construction of Buildings for Industrial Use), was added to the constitution as section 8-A of Article IX in 1962

Home Rule Section 2.  Construction of buildings for industrial use.  For the purposes of fostering, encouraging and assisting the physical location, settlement and resettlement of industrial and manufacturing enterprises within the physical boundaries of any municipality, the registered voters of that municipality may, by majority vote, authorize the issuance of notes or bonds in the name of the municipality for the purpose of purchasing land and interests therein or constructing buildings for industrial use, to be leased or sold by the municipality to any responsible industrial firm or corporation.

It was relocated under the 1973 codification. According to Marshall J Tinkle :


This provision was added to the constitution as section 8A of Article IX in 1962 ( Amend.LXXXVII ) and was relocated under the 1973 codification. Its original placement highlighted the intent to restrict the scope of Article IX, section 8, which mandates that all taxes be apportioned and assesed equally. If general obligation bonds were used so that a particular industry got back tax revenue in the form of aid, this could be equivalent to an unequal tax rate and hence in derrogation of section 8. The Maine Constitution: A Reference manual  ( emphasis mine)

Article IX Section 8  Taxation.
  All taxes upon real and personal estate, assessed by authority of this State, shall be apportioned and assessed equally according to the just value thereof.

Tinkle goes on to say that a second reason was that  previous legislation authorizing municipalities to issue bonds for private industrialization was declared unconstitutional because it was not for a public use.


 "As noted in the literature, the amendment ( Home Rule , Section 2 ) makes it clear that general obligations may now be used to assist private industry for certain purposes" .....this section applies only to general obligations of municipalities and not to forms of financing that do not create municipal debt or liability"Marshall J Tinkle:The Maine Constitution: A Reference manual 
( emphasis mine)

In Article IX ( General Provisions) Section 14 , the constitution restricts the legislature's ability to incur dept.1848

The Legislature shall not create any debt or debts, liability or liabilities, on behalf of the State, which shall singly, or in the aggregate, with previous debts and liabilities hereafter incurred at any one time, exceed $2,000,000.
note: 1848-limit at $300,00.00 1913 limit increased to 2 million 
In 1983, four years after the legislature chartered the Maine Development Foundation, the Justices of the Court, in another inexplicable opinion,  altered the plain spoken meaning of the constitution by reductivly redefining the meaning of the words " any debt or debts, liability or liabilities," :


In Common Cause v. State (455 A.2d 1, 27-29 [ME 1983]) The Law Court held that the credit clause was intended to proscribe suretyship or loan guaranty arrangements, rather than to affect the ability of the state itself to contract debt. Therefore, if the state issues bonds to cover its direct obligations, and not to further surety relationships with a private business, it does not constitute a loan of state credit within this clause"
Quoted from
Marshall J Tinkle in The Maine Constitution, A reference manual:

The constitution uses the word "liability". The Justices added limitations to  any debt or debts, liability or liabilities, which do not exist within the constitution  If it was the constitutional intent to establish dept limitations only in regards to "surety relationships" or "loan guaranty arrangements", then those words should have been clearly stated in the Amendment when it was presented for a public vote. (note added Sept 6 2013 According to Marshall J Tinkle's , The Maine Constitution, A Reference Manual, pg 144, there was Amendment LXVII  in 1950, permitting state to issue bonds for any legitimate purpose- I haven't located court document above -the link goes to a law review article, which looks interesting to read, but as of this writing , I haven't. I can only assume at this point, the phase "credit clause" is intended to reference Amendment LXVII. I haven't located the  Amendment on this list as of yet - however,the above paragraph, still holds true if the amendment merely states that bonds are unrestricted by a cap- bonds being subject to a public vote. Dec 13 2015 : I still have not been able to locate teh amendmentThere are no Amendments for 1950 located on Ballotomedias list. There is this Amendment for 1951,but I do not  )

In 2013 the recently passed  "LD743 An Act to Extend And Improve The Seed Capital Tax Credit " the official fiscal note puts the amount of wealth that will be transferred from the taxpayer to private capitalists at $2,200,000.00. This exceeds the constitutional limit for any debt or debts, liability or liabilities.

Fiscal Note for the Maine Seed Capital Tax Credit
"Amending the Maine Seed Capital Tax Credit Program as proposed in this legislation would reduce General Fund revenue by approximately $455,000 in FY 2013-14, $1,300,000 in FY 2014-15 and $2,200,000 in FY 2015-16. Municipal Revenue Sharing would experience a slight reduction as well. Additional administrative costs incurred by Maine Revenue Services can be absorbed with in existing budgeted resources." 
The hind-site of the Lepage budget proposal of 2015, which proposed to do away with municipal revenue sharing sheds a new strategic light on the fiscal note for the Expanded and Improved Seed Capital Tax Credit of 2013 passed with unanimous support by our Maine legislature. The bill did not receive Governor LePages signature because he said it was not "impactful enough" , a statement enlightened upon by reading LePages failed 2014 An Act To Improve Maine's Ability To Attract Major Private Investments which sought to expand PTZ styled corporate benefits to big businesses employing 1500 or more. The Expanded and Improved Seed Capital Tax Credit includes some limitations which would prevent it from being used for the big business for which the LePage's  "Jobs Bill" proposed to extend Pine Tree Zone styled corporate welfare.

The original Seed Capital Tax Credit was passed by the legislature in 1987, just six short years after the Justices ruled that suretyships are the one type of dept or liability that the constitution intended to prohibit.


SURETY, contracts. A person who binds himself for the payment of a sum of money or for the performance of something else, for another, who is already bound for the same. A surety differs from a guarantor, and the latter cannot be sued until after a suit against the principal. 10 Watts, 258. http://legal-dictionary.thefreedictionary.com/suretyships


Did the legislature forget its oath of office- or did they realize that under strict legal interpretation the Seed Capital Tax Credit is not a surety relationship as according to the following legal definition , If a Person undertakes as a surety when he knows the obligation, of the principal is void, he becomes a principal:

   2. The person undertaken for must be liable as well as the person giving the promise, for otherwise the promise would be a principal and not a collateral agreement, and the prommissor would be liable in the first instance; for example, a married woman would not be liable upon her contract, and the person who should become surety for her that she would perform it would be responsible as a principal and not as a surety. Pitm. on P. & S. 13; Burge on Sur. 6; Poth. Ob. n. 306. If a Person undertakes as a surety when he knows the obligation, of the principal is void, he becomes a principal: 2 Id. Raym. 1066; 1 Burr. 373.

This 1977 law provides a blanket tax exemption to investment companies investing in Maine small businesses. The Seed Capital Tax Credit extended to investors in Maine small businesses is a "refundable tax credit" meaning that if no taxes are owed the taxpayer is obligated to deliver a cash payment to the investor  in the designated amount (up to 60% of the investment made)
The Person in the Seed Capital Tax Credit Program is the Maine State taxpayer who have been made the holders of the obligation by their own legal representatives. Since the legislature are representatives of the people, they are representing the Person who holds surety responsibility but the legislature should know that the obligation of the percentage of the principal promised by the taxpayer as a refund on taxes owed by the investor is void. And so the Seed Capital Tax Credit becomes not a surety ship but an agreement with a principal - the Maine taxpayer- in which the agreement is that the Person owing the principal to the investor takes on a debt in which there is nothing material offered in return. The only thing offered is rhetoric about creating jobs, but as the 2012 research done by Pine Tree Watch Dog concluded, it has never been established that tax incentive programs create jobs which would not otherwise have been created :


Tax break deals studied … and studied, but questions remain unresolved
 The Expanded and Improved Seed Capital Tax Credit of 2013 is sold in the media to the public as a "tax credit" giving the appearance that the refund due to the investor is deducted from money owed to the public by the investor, when in fact this 1977 law and/or the Pine Tree Zone tax incentives have already assured the investor that he will not owe taxes. This assures to the investor that the public is the principal obligated to pay a debt to the investor. 1977 was the same year that The Maine Development Foundation (Corporation) was chartered 



NOTICE :I am not a lawyer and am writing only my layman's opinion . Below are sources of my investigation of what the "Seed Capital Tax Credit" really means . You decide !


§5216-B. Seed capital investment tax credit.  An investor is entitled to a credit against the tax otherwise due under this Part equal to the amount of the tax credit certificate issued by the Finance Authority of Maine in accordance with Title 10, section 1100-T and as limited by this section. Except with respect to tax credit certificates issued under Title 10, section 1100-T, subsection 2-C, in the case of partnerships, limited liability companies, S corporations, nontaxable trusts and any other entities that are treated as flow-through entities for tax purposes under the Code, the individual partners, members, stockholders, beneficiaries or equity owners of such entities must be treated as the investors under this section and are allowed a credit against the tax otherwise due from them under this Part in proportion to their respective interests in those partnerships, limited liability companies, S corporations, trusts or other flow-through entities. Except as limited or authorized by subsection 3 or 4, 25% of the credit must be taken in the taxable year in which the investment is made and 25% per year must be taken in each of the next 3 taxable years. With respect to tax credit certificates issued under Title 10, section 1100-T, subsection 2-C, the credits are fully refundable and the investor may file a return requesting a refund for an investment for which it has received a tax credit certificate on or after January 1st of the calendar year after the calendar year in which the investment was made.
2013, c. 438, §6 (AMD) .] (emphasis mine)

  Commentary  It appears to me that the two phrases above-a credit against "the tax otherwise due: and "The credits are fully refundable" actually contradict each other with the legal definition of a refundable tax credit meaning "they can reduce your tax liability below zero and allow you to receive a tax refund." but a tax liability below zero is not otherwise due !  This seems as if written to reinforce a delusion perpetuated upon the taxpayers- the delusion being that taxes are otherwise due. Most laypersons do not examine in detail what statutes are actually saying- the phrase "other wise due" is placed at the top of the paragraph and the notice that the tax credit is fully refundable placed at the very bottom of the paragraph!


An Act To Extend and Improve the Maine Seed Capital Tax Credit Program Private venture capital fund. As used in this section, "private venture capital fund" means a professionally managed pool of capital organized for a limited life to make equity or equity-like investments in unrelated private companies using capital derived from multiple limited partners or members at least half of which, measured in dollar commitments, are unaffiliated and unrelated, and includes any venture capital fund licensed by the United States Small Business Administration. The authority may require such information as may be necessary or desirable for determining whether an entity qualifies as a private 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.   (emphasis mine)
Commentary  To my humble layperson's reading the highlighted sentence takes non- transparency and pure gobbledygook to levels never before scaled - How many layers and cross references does one have to unpeel to get to the bottom of why such a statement is written into a statute?


This description of  Principal and Surety states it with further clarity:


The principal is the debtor—the person who is obligated to a creditor. The surety is the accommodation party—a third person who becomes responsible for the payment of the obligation if the principal is unable to pay or perform. The principal remains primarily liable, whereas the surety is secondarily liable. The creditor—the person to whom the obligation is owed—can enforce payment or performance by the principal or by the surety if the principal defaults. The creditor must always first seek payment from the principal before approaching the surety. If the surety must fulfill the obligation, then he can seek recovery from the principal after satisfying the creditor. An example of a principal and surety relationship occurs when a minor purchases a car on credit and has a parent act as a surety to guarantee payment of the car loan The Free Legal Dictionary

The Seed Capital Tax Credit gets paid to the Investor without reservation. The Investor may be making a large profit on his investment but he is still due, in addition to what ever profits he realizes, a refund from the taxpayers. The taxpayers are principals in regards to indebtedness - not in a surety relationship- and the capitalist receiving the Seed Capital Tax Credit is the creditor.

Unfortunately Maine has a long history of activist judges. The people vote an amendment in and the judicial system rewrites it after the fact.


Here is the whole of Article IX - general Provisions Section 14 (1848-limit at $300,00 1913 limit increased to 2 million 1950, Amendment LXVII permitted state to issue bonds for any legitimate purpose, according to The Maine State Constitution, A Reference Manual, by Marshall J Tinkle )
Authority and procedure for issuance of bonds. The credit of the State shall not be directly or indirectly loaned in any case, except as provided in sections 14-A, 14-B, 14-C and 14-D. The Legislature shall not create any debt or debts, liability or liabilities, on behalf of the State, which shall singly, or in the aggregate, with previous debts and liabilities hereafter incurred at any one time, exceed $2,000,000, except to suppress insurrection, to repel invasion, or for purposes of war, and except for temporary loans to be paid out of money raised by taxation during the fiscal year in which they are made, and except for loans to be repaid within 12 months with federal transportation funds in amounts not to exceed 50% of transportation funds appropriated by the Federal Government in the prior federal fiscal year; and excepting also that whenever 2/3 of both Houses shall deem it necessary, by proper enactment ratified by a majority of the electors voting thereon at a general or special election, the Legislature may authorize the issuance of bonds on behalf of the State at such times and in such amounts and for such purposes as approved by such action; but this shall not be construed to refer to any money that has been, or may be deposited with this State by the Government of the United States, or to any fund which the State shall hold in trust for any Indian tribe. Whenever ratification by the electors is essential to the validity of bonds to be issued on behalf of the State, the question submitted to the electors shall be accompanied by a statement setting forth the total amount of bonds of the State outstanding and unpaid, the total amount of bonds of the State authorized and unissued, and the total amount of bonds of the State contemplated to be issued if the enactment submitted to the electors be ratified. For any bond authorization requiring ratification of the electors pursuant to this section, if any bonds have not been issued within 5 years of the date of ratification, then those bonds may not be issued after that date. Within 2 years after expiration of that 5-year period, the Legislature may extend, by a majority vote, the 5-year period for an additional 5 years or may deauthorize the bonds. If the Legislature fails to take action within those 2 years, the bond issue shall be considered to be deauthorized and no further bonds may be issued. For any bond authorization in existence on November 6, 1984, and for which the 5-year period following ratification has expired, no further bonds may be issued unless the Legislature, by November 6, 1986, reauthorizes those bonds by a majority vote, for an additional 5-year period, failing which all bonds unissued under those authorizations shall be considered to be deauthorized. Temporary loans to be paid out of moneys raised by taxation during any fiscal year shall not exceed in the aggregate during the fiscal year in question an amount greater than 10% of all the moneys appropriated, authorized and allocated by the Legislature from undedicated revenues to the General Fund and dedicated revenues to the Highway Fund for that fiscal year, exclusive of proceeds or expenditures from the sale of bonds, or greater than 1% of the total valuation of the State of Maine, whichever is the lesser.
In 2013 the legislature passed a statute repugnant to this section of the Maine Constitution which removes the requirement that fiscal information accompany the bond questions on the ballot and instructs that said information will be placed "outside the guardrail" which means "outside the voting area".

The representatives of the tax payers have written the taxpayers a bum deal and called it an "improvement" ! In the case of the Seed Capital Tax Credit, the window remains open, at the date of posting (2013), for the taxpayers to void the agreement, but that seems unlikely as the taxpayers are largely in the dark about what is going on and intentionally so as the next section of this post demonstrates:




Intentional Opacity Designed into Maine's "Three Legged Financial Stool"


 

According to  MaineBiz - the three legs of Maine's "financial stool" are

There should actually be at least a fourth leg and fifth legs to the stool which are The Pine Tree Zone (tax exemption package) The University Of  Maine Advanced Manufacturing Center - joined at the hip to MTI, but that's for another post.

Realizing that the key to understanding the relationship between the three legs of the financial stool lies in the records of payments made via the Seed Capital Tax Credit Program, I sent the following Freedom Of Access Request to the head of Financial and Administrative Services.
To: david.heidrich@maine.gov

Subject: FOAA Request - DAFS

Dear Mr Heidrich,

This is an updated version of a Freedom of Access request for records pertaining to the Seed Capital Tax Credit program which sho
  1. Recipients, name, company and address
  2. The amount of the tax credit that the recipient was awarded
  3. The amount of tax credit the recipient was paid
  4. The percentage of the tax credit that the recipients received.
  5. The exact date that the recipient was awarded the tax credit.
  6. The period of time it took to receive the total due the recipient-
  7. And/Or if the recipient did not receive the total promised , then the amount that the recipient received before the time limit expired.
  8. The amount paid on refundable tax credits when no tax was owed and to whom those amounts were paid.

A complete list going back to the origins on the Tax Seed Credit Program is preferred.
A minimum time period inclusive of the last ten years is acceptable.

The preferred format is an Excel sheet  or other format that can be imported into a searchable data base .

Thank you for taking your time and effort to satisfy this request.

This is the response I received:


Dear Ms. Andersen:


This email is in response to your recent request under the Maine Freedom of Access Act (FOAA) for certain information related to the Seed Capital Tax Credit. I am denying your FOAA request as the information you’ve requested is confidential and not available for public inspection pursuant to Maine Revised Statutes Annotated, Title 36, Section 191.

Sincerely,

David Heidrich, Jr.

Assistant Director of Communications
Department of Administrative and Financial Services
(207) 624-7800

When one thinks about the fact that the tax payers are principals in this debt arrangement, it should be unacceptable that the holders of the debt are not allowed to know the terms of the debt and the dates when the debts occurred ! A private sector legal representative would have a very short career if he/she arranged such a deal for clients

I looked up Maine Revised Statutes Annotated, Title 36, Section 191., which has to do with tax privacy laws. For some reason when I just now tried to find it again, I couldn't and thus no link.

Tax privacy laws are known to the legislatures who designed the Seed Capital Tax Credit Program as a component within the larger context of Maine's inter-linking economic development programs. The secrecy provided by taxpayer privacy laws should be a reason why tax credits which directly transfer taxpayer money to private entities should be unconstitutional. ( in addition to Article IX Section 8  Taxation.  All taxes upon real and personal estate, assessed by authority of this State, shall be apportioned and assessed equally according to the just value thereof. ) As is par for the course in Maine's economic policies, consideration for tax payer interests takes back seat. When the legislature is redistributing the hard earned money of the public the taxpayer should have the right to know what is happening to their money- to ability to see the full trail.

I made the following speculation in a previous post:


A private investment group, electing not to be treated as a private investment group, invests money into the business that is matched by public charity, MTI ( later sections of this bill are clearly tailored to benefit MTI ) . The Investment group then gets a tax credit of 50% of the investment meaning that the investor group makes a profit on 100% of the total investment although the taxpayer is actually covering 50% of the Investment- but the taxpayers contribution is not treated as an investment for which a return on investment is anticipated- but as a tax credit- for which the tax payer gets nothing except the collective benefit of jobs created. This is called 'socializing the risk and privatizing the gain" a new "innovative" tool of the global capitalist who uses political ideologies as a means to his own gain.
NOTE ! according to recent research MTI claims that taxpayer provides only about 14% of its funding

If the qualified matching investment submitted by the entrepreneur includes money derived from a matching grant from Maine's public charity, The Maine Technology Institute, that means the entrepreneur only contributes $2500,000 of a $5,000,000 investment for which he might receive a refund of 3,000,000 ( calculating tax credit at 60%)- Now who wouldn't want that? - answer: someone with a moral conscience

If the investment group happens to be the state chartered Small Enterprise Growth Fund- the taxpayer is already subsidizing this fund to the tune of 10% in a "roll over investment" which functions like a non profit investment in which all profits are reinvested in the fund. So if the same total investment of $5,000,000.00 is used as the starting point- and the SEGF matches that- what then? This is getting too much for me to fathom ! Could the culture of corruption in Augusta really go that deep? If all three "essential legs" are calculated on the same investment amount of $5,000,000.00 that means that the entrepreneur is not putting in a dime but receiving a possible total $3,000,000.00 of redistributed capital in exchange for absolutely nothing- with one exception - that the SEGF "high growth investors" demand an "exit strategy" (selling the business) to insure that they make their high growth profits.
Given that the functioning of the Seed Capital Tax Credit is inaccessible to the public , we can only know what is possible and integrate that which is secret and then factor in human character. The public can't know what is going on and so the tzars who run Maine's economic development policies are free to exploit the public's resources to their hearts delight. We can see what the legislature is doing, if only the public were paying attention. If the investor invests an amount which is doubled by a grant from MTI- which is partly funded by taxpayers, and then receives a refund on the combined total to the tune of up to 60%, via the Seed Capital Tax Credit, that means that the taxpayers are being signed up by their representatives to be indebted to the investor for 120% of the investor's investment. We cannot know if that is occurring, because conveniently, the taxpayers are legally kept completely in the dark regarding essential links in the scheme! The taxpayers need to fire their legal representatives! There ought to be consequences for betraying the oath of office.