NORMAN OK (October 16, 2008) - Hiding the use of public funds, the unmistakable mark of wrong in government!

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

It is the secrecy, stupid!

Oklahoma will soon come face to face with its own state financial disaster resulting from the same failed economic philosophies that recently resulted in the nation and world's economic implosion. Best described in a recent article in the Wall Street Journal as a financial disaster brought on by a long held policy "that the best road to prosperity is to unleash financial markets to allocate capital, enjoy profits." The same economic policy that cost this country $trillions is descending on the Oklahoma public who will be stuck with picking up $Billions in revenue shortfalls from a tax avoidance scam. A scam profiteers use to reap huge unearned profits selling state income tax credits to corporations and wealthy individuals so they could avoid paying state income taxes.

The full effects of this fraud has been delayed by several years because the scheme allows the profiteers to take tax credits they can sell immediately for cash. Use of the tax credits is typically spread out several years. It can take as much as 18 months for the first tax credits to appear. Then the impact is seen as any of various obscure reasons for tax revenue short falls. Between the secrecy and delayed effect fortunes will have been taken before the public finally starts experiencing unexplainable tax revenue short falls. And, a provision in the law prevents the state from recovering any tax credits or money gained from these tax credits, even when a crime was committed in order to get the tax credits.

The first warning went unnoticed when this past June, before the any knew of the coming national disaster, state finance officials quietly revised 2008 corporate income tax projections down from $450 million to $284 million and even further for 2009. A whopping 37% reduction while Oklahoma was reaching its energy induced economic peak. This didn't include the larger drop in personal income tax for the wealthy which is not broken out from all personal income taxes.

What was the cause in Oklahoma? All the results of a decade of Oklahoma style laze faire lawmaking where officials and legislators with little, if any, knowledge and experience in economic development relied on special interest, that stand to benefit most, to formulate economic policy. Including structuring language in the law setting up the program. A key element in the law was to prevent the public from having ever learning how much the program was costing, who was receiving public funds, and how the money was used. The law gave unidentified private groups free and unmonitored access to divert unlimited amounts of future tax revenue to their own use. This allowed future state income tax revenue to be funneled into unidentified accounts. Done in a way the money is not recorded on state ledgers, shirting the budgetary process and all financial accountability. Leaving no paper trails!

To further protect this scheme those creating the program structure the scheme to operate through hidden LLCs to hide the identities of all involved including public officials. Preventing the public from learning who is reaping huge unearned profits from public tax revenue. In return public officials see no need to investigate, or perform simple oversight and monitoring to protect the public against abuse. State officials simply blow off all questions with the canned answer that nothing illegal is occurring.

For those who say nothing illegal is occurring? The crime is in the secrecy, stupid! The crime is in the failure to protect the public interest! The crime is in failure to properly account for public funds! The crime is in failure to follow constitutional responsibilities! When all are public officials are involved, there is no one left to enforce our laws!