$325K hidden PAC money and tax credit loophole connection
August 28, 2008
$325,000 in hidden PAC money funneled to Kevin Calvey, chairman of House Revenue and Taxation Committee, for his 2006 U.S. Congressional campaign while Calvey was authoring language that failed to close a tax credit loophole.
Calvey was the author of an amendment to a bill lawmakers claimed would close the tax credit loophole costing taxpayers $100s million per year. The loophole allows wealthy investors to continue reaping huge unearned windfall profits by taking $2 in tax credits for each dollar invested. This loophole has cost Oklahoma taxpayers nearly $1 billion since that 2006 bill failed to close the loophole.
A detailed examination of Kevin Calvey's Federal Election Commission Campaign Finance Reports filed for his 2006 US Congressional race found roughly $258,000 of Calvey's $425,000 in total reported contributions was channeled to Calvey's campaign through the Club for Growth PAC. Club for Growth PAC is an out of state special interest group lobbying for better tax treatment for wealthy investors. Many of Club for Growth PAC members are from the same class of wealthy investors eligible to use the loophole.
Additional information at
Hiding PAC Contribution
Possible money laundering by over 100 LLC's used to divert potentially up to $470 million for personal gain in 2007 alone?
Previously unobtainable information listing LLC identities LLC's involved in what could amount to as much as $236 to $472 million in 2007 tax credits using a loophole riddled tax credit incentive program that allows some to automatically take $2 in tax credits for every $1 they claim to be invested.
These documents were presented as copies of Oklahoma Tax Commission records which include approximately 70 investing entities that invested $236 million in 16 venture capital companies. These companies in turn invested in 36 target Companies, taking what could be as much as $470 million in tax credits. Only the investment value and not the tax credits are shown on the documents.
A close examination of records reveals both identity and amount similarities between several investing and receiving entities. These similarities raise several questions in addition to the first question regarding "$2 for $1 abuse"?
For example, is the tax credit program simply being used for money laundering (i.e. passing money through solely for the purpose of capturing tax credits)? In the process, have these LLC's doubled or tripled the original amount they passed through?
Further details and explanations can be found at http://prowlingowl.com/Taxfraud/LoopholeUsers.cfm