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This video series on foreign trade zones is very informative about foreign trade zones which are harbored in Maine at the two city states of MRRA and Lorring and other locations as well.
I have been writing about how the Maine legislature sells its redistribution of wealth policies (from tax payers to private capitalists) to the public as "job creation". Notice that this is the way the selling of America to China is also being sold to the American public- its job creation.
Wikipedia on Foreign Trade Zones
A foreign-trade zone (FTZ) in the United States is a geographical area, in (or adjacent to) a United States Port of Entry, where commercial merchandise, both domestic and foreign receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes >>>>>Wikipedia on Foreign Trade Zones
This is just a small part of the history of how Maine got from 1969 when the people voted the Home Rule Amendment into the Constitution to today's post-constitutional Maine which is largely governed by the Maine Development Corporation. I took this from the time line I had created in an attempt to make a living of sorts from doing this research and writing this blog. It was a terrible idea in that respect as there were few takers but as a result of doing the research I became more informed than most about what is taking place in this state- which comes in handy for online debates.The first goal is to spread the information but I am also in need of developing a larger revenue stream to save our own business from extinction- so if you find this information of value- you can still send a contribution to this blog to mackenzie@andersenstudio.com via paypal. - Or you can purchase a mug or set of mugs that you see on the side bar. Just to note that I have been spreading this information for years now and recently I am starting to see it reflected in online debates in comments made by others and so my first and most important goal is seeing signs of success
1969
Article VIII.
Part Second.
Municipal Home Rule.
Section 1. Power of municipalities to amend their charters. The inhabitants of any municipality shall have the power to alter and amend their charters on all matters, not prohibited by Constitution or general law, which are local and municipal in character. The Legislature shall prescribe the procedure by which the municipality may so act.
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.
1977
Legislature
charters the Maine
Development Foundation as
a non-profit corporation to serve as an instrumentality of the state
with the function of .
§916. Establishment
The
Maine Development Foundation is hereby established to foster, support
and assist economic growth and revitalization in Maine. The
foundation shall carry out its purposes in complement to and in
coordination with the economic development activities of the private
sector, community and regional agencies and State
Government. [1977, c. 548, §1 (NEW).]
The
foundation shall exist as a not-for-profit corporation with a public
purpose, and the exercise by the foundation of the powers conferred
by this chapter shall be deemed and held to be an essential
governmental function. [1977, c. 548, §1 (NEW).]
§915.
Legislative findings and intent: "There
is a need to establish a new basis for a creative
partnership of the private and public sectors ...but
which does not compromise the public interest or the profit motive.
The state's solitary
burden
to
provide for development should lessen through involving the private
sector in a leadership role....... The foundation shall exist as a
not-for-profit corporation with a public purpose, and the exercise by
the foundation of the powers conferred by this chapter shall be
deemed and held to be an
essential governmental function.
(emphasis
mine)
Corporate small business investment companies, licensed under the United States Small Business Investment Act of 1958, as amended, and commercially domiciled in Maine and doing business primarily in Maine, shall be exempt from taxation under this Part. [1977, c. 640, §2 (NEW).]SECTION HISTORY1977, c. 640, §2 (NEW).
Commentary - This does not appear to have been changed since its creation begging the question why there is need for an Expanded and Improved Seed Capital Tax Credit- which is a refundable tax credit- meaning if no taxes are owed, the taxpayers of Maine owe the investor a cash pay out.
Is not the 1977 statute a blanket taxation exemption for business investment companies located in Maine? If this is as it appears to my layman's eyes- that means every use of the word "tax credit" by our legislature as applied to small business investment companies in Maine is just a cover for a direct transfer of wealth from tax payer pockets to private capitalist bank accounts
I searched Maine Statute Search to make sure I was looking at a current version; This is what I got: The blanket tax exemption for small business investment companies does not appeared to have been repealed:
Title 36, Chapter 817: IMPOSITION OF TAX ON CORPORATIONS
1987
§13051. Legislative findings ( a global capitalist philosophy !)
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 significantly 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 ...read more
2001 Statute establishing Municipal Tax Increment Financing (TIF) controlled by the DECD corporation3. Declaration of public purpose. It is declared that the actions required to assist the implementation of development programs are a public purpose and that the execution and financing of these programs are a public purpose.[ 2001, c. 669, §1 (NEW) .] (emphasis mine)
2001
Why is all of the authority granted below- not first granted by the Maine Constitution under the Home Rule Amendment ? This statute appears to be intended to transfer the authority described below to the state, which by 2001 has been transformed into the Maine Development Corporation- a public private relationship. Although written as though the statute is granting authority to the municipalities, it is arguable that it is actually claiming authority constitutionally granted to the municipalities for the state, which is now transformed into Maine State Inc.
Municipal Tax Increment Financing (TIF)
§5221. Findings and declaration of necessity
1. Legislative finding. The Legislature finds that there is a need for new development in areas of municipalities and plantations to:
A. Provide new employment opportunities; [2001, c. 669, §1 (NEW).]
B. Improve and broaden the tax base; and [2001, c. 669, §1 (NEW).]
C. Improve the general economy of the State. [2001, c. 669, §1 (NEW).]
[ 2011, c. 101, §1 (AMD) .]
2. Authorization. For the reasons set out in subsection 1, municipalities and plantations may develop a program for improving a district of the municipality or plantation:
A. To provide impetus for industrial, commercial, transit-oriented or arts district development, or any combination; [2009, c. 314, §1 (AMD).]
B. To increase employment; and [2001, c. 669, §1 (NEW).]
C. To provide the facilities outlined in the development program adopted by the legislative body of the municipality or plantation. [2011, c. 101, §2(AMD).]
[ 2011, c. 101, §2 (AMD) .]
3. Declaration of public purpose. It is declared that the actions required to assist the implementation of development programs are a public purpose and that the execution and financing of these programs are a public purpose.
[ 2001, c. 669, §1 (NEW) .]
SECTION HISTORY
2001, c. 669, §1 (NEW). 2007, c. 413, §1 (AMD). 2009, c. 314, §1 (AMD). 2011, c. 101, §§1, 2 (AMD).
2001 Chapter 383: ECONOMIC AND COMMUNITY DEVELOPMENT Subchapter 9: MAINE RURAL DEVELOPMENT AUTHORITY controlled by the DECD corporation §13120-A. Authority established; purpose
2001 Chapter 383: ECONOMIC AND COMMUNITY DEVELOPMENT Subchapter 9: MAINE RURAL DEVELOPMENT AUTHORITY controlled by the DECD corporation §13120-A. Authority established; purpose
2009
SUMMARY 2009-10 (1.000} ($58,784) ($58,784)
2009-10 ($115,236) ($310,597) ($425,833) 2010-11 (1.000) ($79,960)
($79,960) 2010-11 ($156,572) ($420,577) ($?77,149) 19 This bill
eliminates the Department. of Environmental ProteCtion, Off1ce of 20
Innovation and Assistance and transfers the duties of that office to
the Department of 21 . Economic and Community Development, Office of
Innovation. This bill also eliminates 22 funding for a total of 7
positions within the Department of Environmental ProteCtion, 5 of 23
which are associated with the Office of Innovation and Assistance and
2 whose duties. 24 include serving as legislatIve liaisons for the
department.
Confucius
Institute installed at the University of Southern Maine-
The
Confucius Institute
partners
with the
Dongbei University of Finance and Economics.
which
features a departmental focus on globalism: ,
International
Cooperation Office
,
School
Of International Business,
International
Institute of Chinese Language and Culture,
Global
Institute of Management and Economics
McDonnell
said banned topics and questions of academic freedom were never an
issue in USM's negotiations with Hanban, and the university made no
agreements about topics that could not be discussed."Our
(program) is really designed with our school of education to teach
Chinese language, so we're not confronted with those issues," he
said.Hanban, which provides the instructors and materials, also gave
USM $150,000 in startup funds, and will provide about $100,000 a year
to administer the institute, depending on the level of programming it
offers, McDonnell said There is no cost to USM, which has struggled
with deep budget cuts in recent years that have led to the
elimination of some programs and instructors. Maine
leaders laud wisdom of Confucius Institute PPH
Pursuant
to 1995
Part
1: GENERAL PROVISIONS Chapter 1: GENERAL PROVISIONS
S10.
Education Research Institute.
The Joint Steering Committee has jurisdiction over educational
matters.I can’t locate a steering committee, which is said to be a
sub-committee of the standing committee. Here
is a list of members of the Joint Standing Committee for Education
126th Legislature 2013
Education
and Cultural Affairs
Senate:
Rebecca
J. Millett, Chair (D-Cumberland)
Christopher
K. Johnson (D-Lincoln)
Brian
D. Langley (R-Hancock)
House:
W.
Bruce MacDonald, Chair (D-Boothbay)
Mary
Pennell Nelson (D-Falmouth)
Helen
Rankin (D-Hiram)
Matthea
Elisabeth Larsen Daughtry (D-Brunswick)
Brian
L. Hubbell (D-Bar Harbor)
Victoria
P. Kornfield (D-Bangor)
Peter
B. Johnson (R-Greenville)*
Joyce
A. Maker (R-Calais)
Michael
D. McClellan (R-Raymond)
Matthew
G. Pouliot (R-Augusta)
Madonna
M. Soctomah (Passamaquoddy Tribe)
Beginning
with this statement:
WHEREAS,
the United States and the Republic of China, known as Taiwan,
share a most important relationship supported by our common values of
freedom, democracy, rule of law and commitment to a free market
economy; and…….
Commentary:
It goes on to list the economic reasons-and to establish that, China
is on board with “climate change” (actually “pollution”-
which is not the same as climate change) -China, having risen
to the top of global economic status by offering companies
cost-savings in the form of minimalist environmental and health
considerations, is now changing its tune:
Combating pollution has shot up the agenda of the ruling Communist Party, which for years pushed for rapid economic development with little concern about the environmental impact. Under public pressure to reduce the air pollution that blankets Beijing and cities across China, the country’s leaders are rebalancing their priorities. China Declares War on Pollution-NY POST
Combating pollution has shot up the agenda of the ruling Communist Party, which for years pushed for rapid economic development with little concern about the environmental impact. Under public pressure to reduce the air pollution that blankets Beijing and cities across China, the country’s leaders are rebalancing their priorities. China Declares War on Pollution-NY POST
WHEREAS, Taiwan
is the 17th-largest trading economy in the world and is a member of the
Asia-Pacific Economic Cooperation forum, which promotes free trade and
economic cooperation throughout the Asia-Pacific region; and
WHEREAS, the
United Nations Framework Convention on Climate Change is the world's
key instrument for responding to climate change, and a concerted global
effort to combat the challenges posed by climate change requires that
Taiwan also be included in the work of this convention, and Taiwan has
expressed a keen interest to participate in the global effort to address
climate change; and
WHEREAS, it
remains in the interest of the traveling public that Taiwan be included
in the United Nations International Civil Aviation Organization, since
Taiwan is a key transport hub in the Asia-Pacific region; the Taipei
Flight Information Region, under Taiwan's jurisdiction, covers an area
of 176,000 square nautical miles with 1,350,000 controlled flights
passing through annually; now, therefore, be it
RESOLVED: That
We, the Members of the One Hundred and Twenty-sixth Legislature now
assembled in the First Regular Session, on behalf of the people we
represent, take this opportunity to affirm the friendship between Maine
and the Republic of China; and be it further
RESOLVED: That
We support the signing of a United States-Taiwan bilateral investment
agreement and a free trade agreement in order to further strengthen
Maine-Taiwan trade relations, and We support Taiwan's participation in
international organizations and agreements, including the United Nations
Framework Convention on Climate Change, the United Nations
International Civil Aviation Organization and the Trans-Pacific
Partnership; and be it further
RESOLVED: That
suitable copies of this resolution, duly authenticated by the Secretary
of State, be transmitted to President Ma Ying-jeou of Taiwan and to the
Director-General of the Taipei Economic and Cultural Office in Boston.
2013, May An Act To Implement the Recommendations of the Right To Know Advisory Committee Concerning Public Access to Records Relating to Public-private Partnerships
Sponsored
by : Senator Millett
Co-Sponsored by: Senator Langley, and Representatives Daughtry, MacDonald, Malaby, Nelson, Parry, Pouliot, and Sirocki
Co-Sponsored by: Senator Langley, and Representatives Daughtry, MacDonald, Malaby, Nelson, Parry, Pouliot, and Sirocki
SUMMARY
This
bill implements the majority recommendation of the Right To Know
Advisory Committee.
Current
law requires that the Department of Transportation submit to the
Legislature a bill that authorizes the agreement that implements a
public-private partnership for the development of a transportation
facility. This bill requires the department to publish public notice
on the department's publicly accessible website or in newspapers when
it has determined that a public-private proposal and agreement meets
the standards of the
Maine
Revised Statutes, Title 23, chapter 410, subchapter 5
and
to wait at least 30 days after the public notice has been published
to submit the bill.
This regards a conflict of interest between the communities right to know and freedom of access to information concerning toxic and hazardous substances vs business advantages to the Department of Transportation and public-private relationships in attracting large corporations to the state by keeping the confidentiality provision on as it is - protected as a trade secret pursuant
to
1985
Part
3: 487, §11 Chapter 271: HEALTH PROGRAMS:Subchapter 2: COMMUNITY
HEALTH INVESTIGATION AND INFORMATION§1696-F.
Provision of information; trade secrets
(1989
)
( See David Hastings Testimony)
Testimonies:
Maine
ACLU
|
||
Right
to Know Committee/7th Annual Right To Know Report
|
QUOTE
from
1985
Part
3: 487, §11 Chapter 271: HEALTH PROGRAMS:Subchapter 2: COMMUNITY
HEALTH INVESTIGATION AND INFORMATION
The
Legislature determines that it is in the public interest for the
State to examine its emergency response mechanisms and procedures for
accidents involving hazardous materials, to establish a comprehensive
program for the disclosure of information about hazardous substances
in the community and to provide a procedure whereby residents of this
State may gain access to this information.[1985, c. 494, §2 (NEW).]
There
is a need to establish is a
new basis for
a creative partnership of the private and public sectors for economic
development, a partnership which can capitalize on the interests,
resources and efforts of each sector,
but
which does not compromise the public interest or the profit motive.
The
state's solitary
burden to
provide for development should lessen through involving the private
sector in a leadership role. [1977, (
emphasis
mine)
10-A.
Confidential
information. Information
submitted to the department relating to a public-private partnership
proposal under this subchaptmunicipal revenuer is confidential and
not a public record under Title 1, chapter 13, subchapter 1 if the
private entity submitting the information designates the information
as being only for the confidential use of the department and if:
A.
The information is a trade secret as defined in Title
10, section 1542, subsection 4;
or [2013, c. 208, §3 (NEW).]
B.
Disclosure of the information would result in a business or
competitive disadvantage, loss of business, invasion of privacy Ought
Not to Pass Pursuant To Joint Rule 310, May 23, 2013or
other significant detriment to the private entity to whom the record
belongs or pertains. [2013,
c. 208, §3 (NEW).]
If
legal action is filed to gain access to the information designated as
confidential under this subsection, the private entity must defend
its designation and the department shall release the information in
accordance with the order of the reviewing court. Failure to defend
the designation under this subsection constitutes a waiver of
confidentiality by the private entity and the department shall
release the information.
[
2013,
c. 208, §3 (NEW) .]
http://americanpoliticalphilosophy.blogspot.com/search?q=Seed+Capita
http://americanpoliticalphilosophy.blogspot.com/search?q=Seed+Capita
2013 §152. Ratification of bond issue; signed statement
I have written about recently this on this blog. This bill is repugnant to the Maine Constitution, which requires that a short paragraph of fiscal information accompany bond questions on the ballot in order for the bonds to be ratified. This bill moves that very short paragraph off the voting ballot and instructs it to be placed somewhere out side the guard rail which separates the voting area from the rest of the world.
Links to posts on this issue
Presented
by Representative Pringle of Windham
There is an ongoing attempt to establish a Maine Bank- another notch for the Corporate State of Maine's control over the distribution of investment capital in this state.
HOUSE
Jun 12, 2013 INSISTED ON READ AND PASSED - PREVAILS 230 73 YEA
67 NAY 11 ABS
SENATE
Jun 11, 2013 INDEFINITELY POSTPONED - PREVAILS 245 26 YEA 8 NAY
Presented
by Senator THOMAS of Somerset.Co Sponsored by Representative BOLAND
of Sanford andSenators: SAVIELLO of Franklin, WHITTEMORE of Somerset,
Representatives: BENNETT of Kennebunk, BLACK of Wilton, SIROCKI of
Scarborough, STANLEY of Medway, WOOD of Sabattus.
2013,February
2013, March An
Act To Provide Greater Access to Capital for Certain Businesses
Through Advance Payment of Employment Tax Increment Financing
Benefits
is
enacted to read:4.Advance payment permitted. The commissioner, under
extraordinary circumstances, may provide an advance payment in
anticipation of reimbursement under subsection 1 to a qualified
business using a net present value calculation, determined by the
commissioner and the State Tax Assessor, based on an estimate of
future employment tax increment financing benefits. The payment must
be made in the form of a loan from the Maine Rural Development
Authority pursuant to applicable requirements in Title 5,chapter 383,
subchapter 9. The commissioner and the State Tax Assessor shall
establish procedures for determining any variations between advance
payments and final benefits due and for repayment of loans from the
Maine Rural Development Authority under this subsection
Submitted
by the Department of Economic and Community Development pursuant to
Joint Rule 204.Reference to the Committee on Taxation suggested and
ordered printed
Commentary
This
refers to the (up to) 80%payroll tax credit that the state
provides to its targeted sector- or in other words that the state
requires the tax-paying sector (employees , retail sector, other
businesses in the UN-targeted sector) to pay on the targeted sector’s
payroll taxes. This statute says that the targeted sector business
can collect those payouts (from the UN-targeted sector) in advance- the owner of the means of production can now get
his re-reimbursement before he hires the employees. The amount of
money that the capitalist gets is a function of the employees that he
is anticipated to hire and the financing of the payout comes from
other workers and other businesses, which the state dis-qualifies
from offering “quality jobs”pursuant to the definition of quality
jobs as providing higher than average (taxable) employee income.
The fact that the UN-targeted business has to pay its fair share of
the targeted sector’s payroll tax makes it affordable for the
targeted sector to create those “quality jobs ( jobs that pay
higher than average) as it increases the burden on the UN-targeted
sector designated by the state as creators of “UN-quality
jobs” ( jobs that pay an average wage or below-in other words
middle class jobs) making it all the harder for the tax-paying sector
to rise to the level where they can offer “quality jobs” and thus
enter the strata where in others pay most of their payroll taxes-
although they might have to move to a different state to get in on
the deal!
SUMMARY
This
bill creates a presumption that a seller of goods or services is
engaged in business in this State and therefore required to register
with the State Tax Assessor as a retailer and collect and remit sales
and use tax on purchases made by persons in the State, if a person
affiliated with the seller has a substantial presence in the State or
a person who has a substantial presence in the State engages in
certain activities, such as selling a line of products similar to
that of the seller or maintaining an office or distribution center in
the State to facilitate the delivery of the seller's products.
Alternatively, a seller is presumed to be required to register with
the State and collect and remit sales and use tax if the seller has
an agreement with a person to refer potential customers to the seller
and the seller generates more than $10,000 in sales in the State
annually. Both presumptions may be rebutted. This bill also requires
any agreement or ruling by the Governor or an executive branch
department or agency that allows a seller to avoid registering as a
seller to be approved by both Houses of the Legislature.
Enacted,
Jun 5, 2013
Governor's
Action: Signed, Jun 5, 2013
Commentary
This
is an example of how far removed from the relationship of taxation to
representation, the state has become.
The state plays no role in the revenue produced from internet
sales. It cost the state nothing except as the state interprets the
consumers as it's own instrumentalities, serving state purposes. In
numerous statutes the retail sector is excluded from the benefits
provided by the states economic development policies- including the
statute that chartered the
DECD corporation-
so the state is not creating a tax here based on representation- it
is charging a use tax on the inhabitants of the state to out of state
retailers. The inhabitants represent the state’s revenue stream.
Marx was more than right when he described the workers as
commodities, In the lexicon of the contemporary corporate state we
can substitute the word “commodity” with “instrumentalities of
the state”.
Governor
LePage presented the Internet sales tax as his sudden new found
concern for Main Street but this statute caused many who were
deriving an income from online affiliate programs to lose that source
of income as free market companies stopped offering that opportunity
to Maine residence- to which Governor Lepage and the profiteering
corporation, Maine State Inc turned an icy shoulder.
2013 Sales Tax Rate Changes Effective October 1, 2013
Sales
tax rate increases recently passed by the legislature take effect on
October 1, 2013.Sales tax rates have been temporarily increased
from October 1, 2013 through June 30, 2015. The general sales
tax rate of 5% will increase to 5.5%. The 7% tax rate on the
rental of living quarters, sales of prepared food, and sales of
liquor sold on premises will increase to 8%. The
10% tax rate on short term rentals of automobiles remains unchanged. ( in 2015 Governor LePage is calling for increasing and expanding the sales tax even further)
Commentary
The
retail
sector is a mainstay of the taxed sector which is an instrumentality
of the state’s revenue stream! Is
there a connection between this temporary increase in sales tax and
the agreement to give the owners of the means of production the
payout on their payroll tax credit in advance of actually hiring the
employees on which the handout is calculated? Taxes on the employees
that have not yet been hired are part of the revenue stream that is
needed to underwrite the transfer of wealth from the taxpayers to the
owners of the means of production. Since that money isn’t yet in
the states hands then a temporary increase in sales tax will cover
the added benefit to the owners of the means of production of the
tax-exempt sector.- just a little extra burden on the taxed sector-
Not to worry!
2013
§3304.
Industry partnerships
Strengthens
the power of the state to manage the state workforce utilizing
multiple corporate subsidiaries of Maine State Inc and creating an
"Industry Collaborative" in which private business
relations with other private businesses will be organized in a
collaborative way by the state. Governor
Paul LePage
An
Act To Strengthen Maine's Workforce and Economic Future
Fiscal
Note http://goo.gl/7j0QH1
In light of the 1977 statute which appears to still be on the books and which grants blanket tax exemption to small business investment corporations- the "refundable Seed Capital Tax Credit" becomes non other than a direct transfer of money from the pockets of the people to the bank accounts of investment corporations. A refundable tax credit means if no taxes are owed- as is the case pursuant to the 1977 statute, then the taxpayers owe the investors a cash payout refund of a percentage of their investment. That percentage started as 30% when the Seed Capital Tax credit was first created in 1987 and became 60% in 2011, Given that the 1977 statute exempts investment corporations from taxation, calling this bill a tax credit amounts to a willful deception of the people by the Maine State legislature.
Bill
Sponsors Presented by Senator Valentino of York.
Cosponsored
by Representative Hobbins of Saco and
President
Alfond of Cumberland, Senators Cain of Penobscot, Dutremble of York,
Goodall of Sagadahoc, Woodbury of Cumberland, Representatives Bennett
of Kennebunk, Berry of Bowdoinham, Knight of Livermore Falls.
One
suggestion we would offer concerns private venture funds in Section 3
of the bill. The proposed language would modify existing I0 M.R.S.A.§
1100-T(2—C) paragraph (D) to increase the limit on tax credits for
private venture capital funds from $500,000 to $4 million. This is a
rather larger increase from the current limit.We think a more modest
increase of $1 million is preferable and would better limit the
fiscal impact of the bill. Testimony
by Elizabeth L Bordowitz,Chief Executive
Officer Finance Authority of Maine
Time
line of Incrementalism
1987
Seed Capital Tax Credit established 30 % of capitalist investment
covered by taxpayers spread out over 2 years.
2001
chunk of investment paid by taxpayers goes from 30-40%. Rate of
transfer from people to owners of the means of production escalated
by 50%- spread out over 7 years
2011
Maine Seed Capital Tax Credit Amended to increase the amount paid
by taxpayers to 60% of capitalist's investment
2013
Taxpayer now pays 60% of capitalists investment spread out over
four years- rate of transfer of wealth from taxpayers to the owners
of the means of production escalated eight fold. The legislature
calls the bill “The Expanded and Improved Seed Capital tax Credit”
Expanded indeed! Improved? Only for the capitalists!
Commentary:
I haven't read every
testimony
which
are all given by representatives of private corporations and
investment firms or other corporations in Maine's economic
development network, i.e F.A.M.E,
The S.E.G.F,
The D.E.C.D,
and the Maine State Legislature, which prioritizes the interests of
the "targeted sector" over the interests of the general
public. All who testified stand to gain from the Seed Capital Tax
Credit. Although Beth Bordowitz testified in favor of the Seed
Capital Tax Credit, she stands as a lone voice representing the
interests of those burdened with the cost- ie. Maine's UN-targeted
sector and the employees within the targeted sector.
The
media failed to report on Ms Bordowitz recommendation giving
preference to articles on how the Seed Capital Tax Credit benefits
the recipients of the refundable tax credit.
A refundable tax credit means that if no taxes are owed, the
taxpayers owe the investor a cash payout. If the investors first
visit the Maine Technology Institute an
agency which advises the targeted sector on the availability of other
support services,
the investor will know that it is to his advantage to acquire Pine
Tree Zone tax incentives prior to applying for a Seed Capital Tax
Credit. The Pine Tree Zone tax incentives can provide 100%
tax exemption from personal and corporate income tax and an 80% tax
credit on payroll tax.
If the Investor's gets a charity donation from the Maine Technology
Institute of a 100% matching fund of his original investment before
applying for a Seed Capital Tax Credit- that means he is due a
refundable tax credit of up to 120 % of his original investment (
pre-MTI matching fund) from Maine taxpayers who are also covering up
to 80% of the investors payroll tax and are part of the source of
MTI's funding. If the investor travels the right route through
Maine's corporate welfare system, the investor will in the end
invest nothing- more or less- and will still be able to retain all
the profits of his business investment. I
qualify this as unconfirmed speculation on my part-to allow for the
possibility that I have not yet discovered the place where Maine's
economic development policies restrict using multiple tax incentives-
which I have not yet found after four years of researching the
statutes.
The
Maine media failed to report on what is in the "Expanded
and Improved Seed Capital Tax Credit and So on Preserving
The American Political Philosophy Blog-
I published this breakdown of the bill:
In
Maine, the new extension of the Seed Capital Tax Credit will
accelerate the transference of wealth to the wealthy in the following
ways:
- ·Removing limits on the life of a capital fund ( after following the references back to the original statutes, the limit that I found is to the length of time that the investor has to collect his tax credit pursuant to the limitation imposed that it must not be greater than 50% of his total tax due. There has been a 15 year limit imposed on the investor in which his tax credit can be applied....until now.
- The following sentence is added to the definition of a venture capital fund: An entity that otherwise qualifies as a private venture capital fund may elect not to be treated as a private venture capital fund for purposes of this section with respect to any proposed investment.
- The amount of annual gross sales for the business receiving the investment has been changed from $3,000,000 or less to $5,000,000 or less.
- The requirement that the operation of the business must be the full-time activity of the owner has been changed to a substantial professional activity of at least one of the principal owners, as determined by the authority
- The requirement that the eligible business bring capital to the state has been struck out.
- In section D in which limitations on the investment to which any entity is applying are discussed, the word "entity" is struck out and replaced with "private venture capital fund"
- Section D changes the aggregate limit for a private venture capital fund from $500,000 to $4,000,000 and strikes out the individual limit within the aggregate for entities treated as a flow-through entity for tax purposes.
- Changes the annual gross sales allowed for eligible businesses from $3,000,000 to $5,000,000
- Changes the requirement that the operation of the business must be the full-time activity of the principal owner to substantial professional activity of one or more individuals who are not managers of the private venture capital fund, as determined by the authority.
- Changes the prohibition against a tax credit certificate being issued to a private venture capital fund if an investor in the fund is a principal owner of the eligible business or a family member of the investor has any existing ownership interest in the business. by striking out "investor" and replacing it with "manager of the fund".
- Increases the amount of that the tax credit is not allowed to exceed , which was $2,000,000 in 1996 and becomes $5,000,000 in 2015-
Commentary
unlike
the treatment of the general taxpayer in the Chained
Consumer Price Index
that
this same legislature will be adopting, the legislature is insuring that the investor is generously compensated for the shrinking of the
dollar, due in part to the activities of the Maine state legislature
in redistributed worthless paper money distributed by the federal
government into the whole economy via its "targeted sector"
recipients.
It
was passed by the House- no roll call available.
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