SIGN HERE! In the mid-seventies refundable tax credits came into use in the USA and were readily incorporated into Maine's economic development policy. When the Maine Capital Corporation was established, by the Maine Legislature, its charter provided for a 50% tax credit to attract investors and a provision making corporate small business companies tax-exempt. The two provisions make sense only if the tax credit is treated as a refundable tax credit, one in which if no taxes are owed, the tax payers owed the investors a 50% refund on their investment. In the 1970’s, under the leadership of Governor Longley’s board, made up of the CEO’s of Maine’s most prosperous business, the Legislature declared central management of the economy to be an essential government function, which must be done through public private relationships. In The Governor’s Task Force report of 1976 [1] the following justification supported the recommendation that two complimentary corporations be c...
Examining the Fundamental transformation of the American political system that originated in the political philosophy preserved by Publius in The Federalist Papers. This blog was originally published as Main Street Economy and focused on legislation passed in the state of Maine "inspired" by similar laws passed by other states which collectively constitutes a fundamental transformation of the American political philosophy within state incubators.