Why did OK lawmakers fail on two occasions to close a huge tax loophole?
October 21, 2008
Why did OK lawmakers pass a law that prevented them from knowing how much a program was costing and where the money was going? Isn't that lawmaker's constitutional duty to oversee the use of public money? It should be no surprise to learn why.
The answer to both questions - because of this law of flaws, shrouded in secrecy, Oklahoma lawmakers are free to reap huge unearned profits skimming tax revenue, without fear of risking a conflict of interest or violating a law so riddle with loopholes. This all started with a law billed as encouraging economic development. A law containing a cleverly designed scheme, wrapped in secrecy. A law those behind knew how to get passed when lawmakers didn't have time to read or discuss the contents of the law. A law that allowed some to create secret businesses fully authorized to take unlimited tax credits, free of oversight and monitoring. Secret businesses created to operate financial shell games taking $100s million in tax credits in return for nothing. Tax credits which can be immediately converted to cash by selling.
The combination of loopholes allows a variety of schemes. Here we illustrate one of the schemes using a hypothetical example. Say someone mentions to a few lawmakers a chance to invest $100,000 in a new deal, and realize an immediate return of $200,000. As always word spreads and all 150 lawmakers want in. 150 lawmakers would get $30 million or a mere 10% of the investment offered by Foxborough/Capital West covered on our Website. It is likely more because $30 million out of is pretty cheap payment for those who are key elements in the scheme's success to turn their backs while others are making $570 million. It obviously requires other state officials, but their involvement is self-explanatory once you understand the scheme.
The scheme is so cleverly designed that turning backs, feigning they didn't know, they relied on others they trusted and were told the program would create jobs is all that was needed to both create the law and provide protection. Allowing lawmakers to enjoy huge unearned profits, and free to claim total ignorance. They simply claim they heard of a good business opportunity and had no way of knowing that the money came from tax payers.
A program so perfectly designed for fraud, yet totally dependent on secrecy that keeps the public ignorant of what is occurring. All that is required to show what is really happening is for lawmakers to obey their oath and constitutional duties and act to strip the veil of secrecy providing full disclosure revealing how much the program is costing the public and who receiving the money. In a case void of any possible legitimate reason for secrecy failure to act is an admission of involvement and cover-up.
- What is the crime? The constitution provides for oversight of public funds.
- That protection has been stripped. That is one crime.
- Who allowed that to happen? Those are the criminals!