NORMAN OK (September 22, 2008) - $4.7 billion first revealed! OK Tax credit cards gone wild! State officials trapped and can't stop!

Nick Baker
Fax: 214-572-7260
Contact Email: nite@prowlingowl.com

We recently revealed OK Tax Commission documents showing investments of $236 million filed in 2007. The law allows CAPCOs (See note below explaining CAPCOs) to take twice the amount of the investments in tax credits. This comes to $472 million in tax credits.

Sadly, this revealed much more. Although the law was designed to prevent the public from ever learning of the cost (only to be felt in future tax revenue shortfalls) or who is benefiting, there are things in the law we can use to determine some information. In this case the bare minimum this program is costing.

One element of the law requires that a CAPCO cannot have more than (1/10) one-tenth of its total investments in one company. For each of the CAPCOs to meet the minimum would require $2.36 billion in total investments, which equates to $4.72 billion taken in tax credits. Half or $2.36 billion going straight into pockets as unearned profits. The same people also receive $2.36 billion in venture ownership interest.

The public soaked for at least $4.72 billion going directly into the pockets of state officials and their cronies, in return for nothing!!

Unfathomable? Our form of government is designed to prevent this. Well, consider the following:

One element of public protection is public officials to guard against misuse of public money. What happens in a case like this where public officials are likely trapped in a corner by their own involvement? Helpless to act without involving themselves.

Another element of defense is budgetary limits. Not here, tax credits are not part of the budget or state finance system. Tax credits are tax credit cards with no limits, backed by the state treasury. The bill doesn't come for several years.

Then the last line of defense is the public being informed how the government is handling our money. The Oklahoma public has been stripped of its last defense, clueless it happened, through unconstitutional actions that denies the public the right to know. The ultimate price for apathy!

Oh, and that press thing? Right! This subject doesn't help ratings or sell papers. And, crony ownership!

Where does that leave us? Sitting helpless like fish in a barrel while a natural phenomena called greed creep left uncheck for nearly a decade has gone nuclear. There is no way or no one to stop this outside a public uprising. Currently there are no signs of that happening. No signs the public gives a hoot? Leaving the end to come like the current US financial crisis. In a crash, but Oklahomans can't print money. Bankruptcy of a government is certain. It happened to Orange County CA. That came as a result of incompetence. Oklahoma can add greed, corruption, negligence and apathy to incompetence.

Note: The CAPCO or capital company is a middle man included by the law that all investments must pass thru in order to use the tax credit program. This provides and additional layer of cover for investors. Only the CAPCO is authorized to take tax credits. Investors must invest in the CAPCO. The CAPCO gets the tax credits and depending on which investors prefer tax credits or cash, the CAPCO arranges to sell unwanted tax credits. Using the money to fund the investment and insure each investors gets their 100%, less the CAPCOs cut, in tax credits and cash.

Visit our blog to leave your comments at Clubcrony.com

Further details and explanations can be found at http://prowlingowl.com