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Ongoing investigations have uncovered, $1.3 Billion of Oklahoma tax collections have been skimmed off the top, and off the books. $1.3 Billion is only part of 2007 and 2008 tax credits allowed for undocumented investment claims; less than 10% for 2009, and part of 6 of more than 40, 2006 tax credits. Seven programs are responsible for $1.2 Billion of the $1.3 Billion. For new details, including identities and amounts click here.
To put this in a perspective most can relate:
- 5,052 mostly straw investors, each received more than $250,000 in tax credits they could immediately exchange for cash, the same as a receiving a state check. Except these checks are using tax collections, off the books, not part of the budget, not tracked and no accountability.
- Biomedical Research, offers one of, if not the most promising future; for a long term, higher paying industry. Less than $1 million in Biomedical Research tax credits were divided between 2,658, averaging(1) $336 each.
- Weyerhaeuser, alone received $109 million, for 2007 and 2008. Mathematically impossible for Weyerhaeuser to earn $109 million based on Weyerhaeuser's own published numbers. Weyerhaeuser, a publicly traded company reports 162 employees, in Oklahoma. Records found reveal the number of employees has been slowly dropping.
- 950 individuals and 300 businesses, averaged more than $1 million in tax credits, each; or 1,250 received more individually, than all 2,658 combined, received in Biomedical Research tax credits.
Note: It should be pointed out that while, Biomedical Research tax credits are for donations to non-profits; the larger programs are allowing multi-millions in tax credits for loans to non-profits. At least, Biomedical Research donations serve the intended purpose and don't have to be paid back, with interest. Those interest bearing secured loans, claimed as high risk venture capital investments, are one of a wide variety of schemes used to hand out unearned tax credits.
Any pretense these programs are intended for anything other than crony welfare, are clearly exposed by not only the aforementioned, but the following which is a partial list of other evidence. Situations that serve no purpose or benefit for the public or business growth, rather the opposite; to undermine economic growth, and the public interest; for the personal benefit of those receiving $Billions in public funds.
- Claims of job growth that cannot be documented, or demonstrated in any fashion. Just the opposite with few businesses lasting any length of time.
- Tax credit programs are allowed to operate free of oversight and accountability.
- Documentation and records have not been maintained, avoiding leaving evidence.
- $100s million in tax credits were allowed, without filing required reports. Those receiving tax credits are allowed to avoid filing documentation required to demonstrate investments meet tax credit eligibility, requirements.
- False claims, used to pay "so called investors" an automatic and immediate 200% profit, in refundable tax credits.
- Businesses used as straw investments, soon fail and straw investors receive exemptions allowing them to keep their 200% profits
- Head of the Tax Commission issuing misleading information, and false report, to cover up fraud.
- Officials unwilling to address evidence, including:
- false claims.
- fraudulent bank loans used to file false claims.
- false reporting on Open Books.
The question is not: are government officials benefiting, but how many, who and how much? The programs were setup and are used in a way investors are shielded from having knowledge their investments are tied to tax credits. This also means government officials are prevented from learning if their private investments are, in fact, tied to tax credits. With enough tax credits for 26,000 people in Oklahoma to receive $50,000 each, and not one state officials knowing which investments are benefiting. The likelihood is virtually a certainty. Too convenient, and the law doesn't accept deliberate ignorance as a defense.
Legislative committees responsible for oversight and task forces created to oversee and evaluate tax credits; have repeatedly rejected evidence, in favor of providing a platform for those involved and benefiting to praise the benefits; providing the press with article material. The committees, task forces, or media, never questions or challenges, claims.
Note: (1) Average and averaging - single entities, such as LLC's are used to shield the identities and amounts received by multiple straw investors.