Sooner Tax Tumors

$100s millions in tax revenue is being bilked through, the Capital Formation Incentive act, created in a way that certain unknown private entities are allowed free access unlimited tax credits which they are allowed to immediately sell, converting to cash. All done automatically, free of any need for involvement on the part of a state official. Leaving state officials free to participate and benefit, without creating a conflict of interest.

The kindest thing that can be said about this law, where not one lawmaker voted Nay!

"it is the most negligent, incompetent and irresponsible act a body of public officials could perform!"

The power of political donations.

State legislators and the governor failed, again**, to close the tax credit loophole, in 2006, when Rep. Kevin Calvey, while authoring a new bill, received a visit from Paul Doughty, President of Altus Ventures the biggest known abuser of the tax credit loophole, a member of the investment community reaping $100s millions in huge earned windfall profits, donated approximately 75% of Calvey's total campaign donations in his run for US Congress. See Suspicious Contributions and ** Note: Previous attempts to close loophole. See One Two

When asked about Doughty's role

"He (Doughty) did express concern that there were some legitimate programs going on and he didn't want them to be thrown out with the bad ones," said Calvey, R-Del City.

So far information has surfaced showing taxpayers have lost at least $850 million through these loopholes. $630 million since the loopholes were to be closed with this new legislation.

So many wrongs the enactment of the law constituted a criminal act! -

A program created to allow one state official in the Oklahoma Tax Commission will see how much the program is costing the public, where the money is going, until starting in 2010 when 3 more state officials will start to receive reports on only how much the program has cost so far. Well after $billions have disappeared into unknown hands.

A program created under state legislation. Senate Bill 1577 creating the Capital Formation Incentive Act, was written in the midst of unusual and suspicious campaign donations. Then held until the hectic closing day of the session to put before both houses for a vote. When legislators had neither the time nor inclination to examine and debate a law with loopholes strategically scattered throughout 68 pages of legal goobledegook.

There is nothing illegal about elected officials participating and enjoying huge profits, from a program where no official is required to act and create a conflict of interest. Officials are only expected to disclose which business they are involved. Meaningless in this case where the public is denied access to which companies are receiving government money, and would have no way to connect officials to wrong doing.

Some key elements of the law protecting the scheme

A program created to operate free standing with no official involvement, void of oversight and accountability, no limitations and no meaningful qualifying criteria, and nothing required in return.
Kept hidden: How much, where the money goes and what if anything the state receives in return is kept hidden from both the public and state lawmakers.
Subverts the state Constitution's requirement the Legislature and Governor balance the budget within available revenue.
Money is given to unknown private entities with no strings attached.
Undermines the constitutional checks and balances provided, failing to protect the public interest.