Legislators, Deal should make sure CAPCOs go nowhere

A little over a week ago, I wrote about how good ideas go bad. The following idea is just plain bad, and needs to be stopped. From the AJC:

A potentially costly and controversial investment law that was killed seven years ago appears to have wandered off the set of “The Walking Dead” and back into the state Legislature.

In 2004 lawmakers buried the program to funnel $75 million in tax credits through investment companies to small businesses before it could grow. Now a new Legislature has decided to bring it back, and this time it would cost taxpayers as much as $125 million. In addition, some of the legislators who lined up to repeal the law in 2004 are the ones reviving it. …

Proponents of the bill argue it would provide the money needed to help companies expand and create jobs. Opponents say that — as with the previous law — the new measure will simply hand piles of taxpayer money over to a few investment firms, which will reap most of the benefit.

Here’s how the current proposal would work: SB 203 would clear the way for “certified capital companies,” called CAPCOs, to operate in Georgia. These are private venture capital companies, several of which already operate in other states. Under SB 203, the state’s insurance companies would receive tax breaks to invest in CAPCOs. The CAPCOs would, in turn, invest in small businesses and startups across the state, enabling them to grow and create jobs. CAPCOs eventually wind up with the principal invested and any profit.

Under the other idea we’ve discussed, at least the state would be an equity partner in the investments and taxpayers might recoup some gains (however, there are many caveats at play there; please read the earlier piece if you haven’t already). The CAPCO is simply a give-away, with only a promise that some jobs, somewhere, some day, might be created.

But because of the way the Legislature works, the bill — which passed the House last year without much fanfare, perhaps because a lot of House members didn’t realize what they were voting for — could make it through the General Assembly far too easily.

Senate leaders need to make sure it is killed when they return next month. If not, Gov. Nathan Deal needs to veto the bill. Tea party members, this is your cue to call your legislators, particularly in the state Senate.

This is not conservatism. It’s not about promoting the free market. It’s corporate welfare, and it needs to die on the vine.

– By Kyle Wingfield

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53 comments Add your comment

Bart Abel

December 5th, 2011
11:57 am

Hear, hear. Thank you Kyle.

sean Smith

December 5th, 2011
12:10 pm

Isn’t this crony capitalism that republicans have been screaming about, the government picking winners and losers.

This looks like a huge invitation to corruption, as if Georgia politicians need any help with that.

ByteMe

December 5th, 2011
12:13 pm

It’s not really corporate welfare. It’s providing a job market for ex-legislators, similar to becoming a lobbyist. It’s political welfare.

Jefferson

December 5th, 2011
12:16 pm

These current so called leaders in Atlanta should stick to the running of the state and quit with the new laws.

getalife

December 5th, 2011
12:48 pm

Tow the party line and bow down to corporate power or they will kick you out of the gop tiny tent kyle.

How about them dawgs?

Hillbilly D

December 5th, 2011
1:22 pm

which passed the House last year without much fanfare, perhaps because a lot of House members didn’t realize what they were voting for

I’d have to take the cynical view on that. They know exactly what they are voting for, they just hope that we don’t catch ‘em at it.

Kyle Wingfield

December 5th, 2011
1:24 pm

Hillbilly@ 1:22: Fwiw, I didn’t intend to let them off the hook with that comment. I’m sure some of them knew what was going on, but those who didn’t and voted “aye” anyway are just as guilty imo.

Road Scholar

December 5th, 2011
1:30 pm

What? You mean the typical way of making money and investing is not good anymore….Oh yeah, all those local/state banks have gone bankrupt and the FDIC bailed the depositors out. Who will bale the investors out on this sham? And I thought that conservatives didn’t want government in the business arena!

Hillbilly D

December 5th, 2011
1:42 pm

Kyle @ 1:24

No argument there, It’s their job to no what they are voting on and if they don’t know, then the prudent thing to do would be to vote no. When I vote on an Amendment to the State Constitution (and those are legendary for the language. obsfication and parsing), if I don’t understand it 100% and agree with in total, then I always vote no. It’s been proven to me time and again, in the years I’ve been voting, that that’s the prudent way to go.

Kyle Wingfield

December 5th, 2011
1:45 pm

Road @ 1:30: I am very pointedly saying there’s nothing conservative about CAPCOs.

sailfish

December 5th, 2011
1:51 pm

hillbilly

You have to be careful with that no vote, because of the wording, sometimes a no vote means yes….

@@

December 5th, 2011
2:05 pm

The more I read about subsidies, the more I agree with Kyle’s statement:

I am very pointedly saying there’s nothing conservative about CAPCOs.

They’re everywhere!

According to this article it’s just a case of swapping slobber.

The chairmen and senior minority members of the Senate and House agriculture committees tried to add a five-year farm bill onto a deficit panel package that never came together. They promised “reforms” that would end much-criticized direct subsidy payments to Southern rice and cotton growers whether they farm or not.

But instead of banking the nearly $50 billion in savings, farm-state lawmakers maneuvered to channel much of the money to a new subsidy for locking in four-decade-high revenues for corn and soybean growers in the Midwest.

The new subsidy would act as a free revenue insurance and could pay out if a farm lost as little as 13 percent of its revenue in a year. They easily could end up costing the government as much or more than the current subsidies to cotton and rice growers

Sure sounds like a farm subsidy to me.

Soybeans and corn…a renewable energy.

schnirt

@@

December 5th, 2011
2:07 pm

Hillbilly:

When I vote on an Amendment to the State Constitution (and those are legendary for the language. obsfication and parsing), if I don’t understand it 100% and agree with in total, then I always vote no.

I don’t vote yay or nay, it’s safer that way.

(ISH)

@@

December 5th, 2011
2:17 pm

Line-item veto idea comes from Janesville, again

Ryan’s bill—like the earlier Ryan-Feingold measure—tries to sidestep the constitutional problem. It requires the president to tell Congress within 45 days of the enactment of an appropriations bill that he wants to cancel certain items of discretionary spending.

Congress must respond quickly with an automatic up-or-down vote on each item.

“Can’t amend it, can’t duck it, so we can’t run away from it,” Ryan said, and that public exposure could have a chilling effect on the introduction of wasteful spending.

Ryan said he and Van Hollen worked with the lawyer who argued against the Clinton line-item veto in the Supreme Court to ensure this bill would pass constitutional muster.

I watched Van Hollen (D) and Ryan (R) discussing this bill with Greta. It was nice to see a bi-partisan effort. Hope it flies this time ’round.

It’s a start.

whatamoron99

December 5th, 2011
2:18 pm

Everyone uses the word “CAVEAT” incorrectly. It’s amazing, really. That there could be that many morons in one zeitgeist.

You know?

Hillbilly D

December 5th, 2011
2:36 pm

My reasoning as to why I vote “no” on an Amendment if I’m not sure I want to vote for it, is that at the least, things will stay the same as they are. No argument though about their transposing no and yes, in many cases.

As to what’s liberal and what’s conservative, I feel like those words lost all their original meanings, years ago.

Hillbilly D

December 5th, 2011
2:40 pm

I don’t vote yay or nay, it’s safer that way.

That’s the way I felt in the last Governor’s race. I felt they were both crooks, so I just skipped it. Couldn’t vote for either one in good conscience.

Speaking of farm subsidies….did you know that after NAFTA, Midwest corn flooded the Mexican market and put many Mexican corn farmers out of business? NAFTA was as bad for Mexico as it was for us. It always pays in a lose/lose situation, to look at who the winner is. (IWH)

Chuck Doberman

December 5th, 2011
2:46 pm

“As to what’s liberal and what’s conservative, I feel like those words lost all their original meanings, years ago”

Hillbilly, that’s no lie, though try to tell that to the fringes of either party and you’ll get an earful of differing opinion

whatamoron99

December 5th, 2011
3:07 pm

The only words that have retained their intrinsic contextual inferences are moron and imbecile, but only because of the internet blogs where so many morons and imbeciles light up so spectacularly every single second.

JF McNamara

December 5th, 2011
3:12 pm

I can’t believe that you line up with Bookman on this one. Both sides realize we are just getting ripped off.

This came back up because the governor pushed it. He’s lining his friends (and his) pockets with your money. We all saw this coming.

UGA 1999

December 5th, 2011
3:16 pm

This should be illegal.

Hillbilly D

December 5th, 2011
3:24 pm

Actually moron and imbecile were once clinical terms, so they’ve really lost their meaning, as well.

Jack

December 5th, 2011
3:53 pm

I voted for Deal; couldn’t vote for the Democrat. I’d've rather voted for the lady that was running. CAPCO needs to be vetoed if it gets that far.

carlosgvv

December 5th, 2011
4:13 pm

If this is corporate welfare, you can count on the Legislature passing this law.

Kiljoy

December 5th, 2011
4:27 pm

Isn’t it funny that with all of the “conservatives” making policy in Georgia for the last 10 years we have 1) Higher unemployment than the nation 2) The highest bank failure rate in the nation 3) One of the worst educations systems in the nation 4) One of the worst transportation infrastures in the nation 5) Among the worst housing markets in the nation and the list goes on. So much for conservative orthodoxy.

whatamoron99

December 5th, 2011
4:31 pm

No, they are still clinical terms and they are illustrated with photos in the medical books, and I happen to own a large library of these books, and I’ll turn to the right page, hold on, lets see, J…K…L…M..ah, there it is, M…..Ma….Mi……here it is, Mo, lets see, M….o….r…o…n. moron. yes, Jay Bookman’s picture is there, just as I predicted.

whatamoron99

December 5th, 2011
4:31 pm

UC, I minored in psych in college, man.

Pete

December 5th, 2011
4:47 pm

Kiljoy…

You are so right!!! CAPCO is another Repub idea that we may be suck with.

Hillbilly D

December 5th, 2011
4:47 pm

I’d classify this bill as “Crony welfare” more than “Corporate welfare”. The Cronies just happen to be corporations and I wouldn’t be surprised, if this comes to pass, if it isn’t newly formed corporations, formed just to profit from it.

We saw some of that with last year’s SB122, private companies getting into the reservoir business.

@@

December 5th, 2011
4:51 pm

Hillbilly:

That’s the way I felt in the last Governor’s race. I felt they were both crooks, so I just skipped it. Couldn’t vote for either one in good conscience.

I knew Monds wouldn’t win…I voted for him anway. Now I get to complain. If I don’t vote, I don’t get to complain.

If what I’ve read is true, Monds received the largest percentage of votes for a Libertarian candidate in a state-wide race.

Put me on that “firsts” list. A trailblazer goin’ DOWN in a blaze of glory.

(ISH)

Hillbilly D

December 5th, 2011
4:57 pm

@@

I couldn’t go for Monds, either. First, I thought he was in way over his head and second, I’m not a Liberterian, so many of his ideas were foreign to my way of thinking. I voted in all the other races, holding my nose for most of them. I’m gonna gripe, no matter what. It’s what I’m good at. (IW&SH)

I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...

December 5th, 2011
5:17 pm

“One of these days we’ll have a conversation about Newt Gingrich,” Pelosi said. “When the time is right. … I know a lot about him. I served on the investigative committee that investigated him, four of us locked in a room in an undisclosed location for a year. A thousand pages of his stuff.”

Does Nasty even understand that this^^ is an ethics violation? Or does she even care?

Dusty

December 5th, 2011
6:17 pm

CAPCOs sounds like another word for the failure driven STIMULUS only no shovels are mentioned. Just better business blah blah blah.

How long are our “statesmen” going to try and pull the same tricks on us? Both political sides want to pull the “let us use your money and we will do better somewhere somehow”. Seems they can’t stand the idea of something NOT being spent.

Please stay indignant (angry) when our state government tries to play Santa Claus for unknowns and might-bes. At this point, I’d rather play unrepentant Scrooge than Santa Claus.

Dusty

December 5th, 2011
6:26 pm

I Report,

I wondered what happened to Pelosi. Now I know. Locked in a room with a “committee” for a year reading thousands of doubtful deadbeat documents. Torture!

Maybe we should have more pity for this poor perturbed woman!!

Dusty

December 5th, 2011
6:33 pm

Hillbilly D

“Gripe” is just a synonym for a firm review of the facts.

You make good reviews.

Hillbilly D

December 5th, 2011
6:39 pm

I don’t doubt that Pelosi might have a lot of ammo to use against Newt. Problem is she ain’t squeaky clean herself. Just about anybody in Congress, especially those who’ve been there for years, is just the pot calling the kettle black, when it comes to dishing dirt on their colleagues..

@@

December 5th, 2011
6:53 pm

And Newt responds to Pelosi:

“I want to thank Speaker Pelosi for what I regard as an early Christmas gift,” he said.

“I regard [the threat] as a useful education of the American people to see what a tainted political, ethics operation Nancy Pelosi was engaged in.

“I would hope the House would immediately condemn her if she uses any material that was gathered while she was on the Ethics Committee because that would be a total violation of the committee”

Of the 84 charges brought against him, 83 were dismissed.

Nancy shot off her mouth and will be injured by the recoil. The dems don’t hesitate to use Nasty, do they?

Fred

December 5th, 2011
6:57 pm

Color it a done Deal. As long as the Republican power elite is getting their fair share of the graft there is no proposal to steal taxpayer money to give to their rich donators that will fail to pass. And their idiot sheep will STILL continue to elect them and defend them.

What do you expect when you elect as Governor a man who had to run with his tail between his legs from the US Congress to keep from being brought up on ethics charges?

Oh, and it’s ALL Obama’s fault lol.

Hillbilly D

December 5th, 2011
6:57 pm

@@

When Obama got elected and took office, I figured one of the first things he would do would be to slide Pelosi aside and put in somebody, of his liking, with less baggage. I’m amazed that she’s still there, in a leadership position.

@@

December 5th, 2011
7:08 pm

Hillbilly:

Maybe he thought Pelosi would make up for his inexperience. Besides, the uber left would never have tolerated it…her being the first woman speaker ‘n all.

======================================

The rest of the article with a comment that follows:

The case underscores the mixed feelings Democrats have about taking on Mr Gingrich in next year’s election. Some, like Mrs Pelosi, relish the chance of doing battle with an old foe who has decades of political baggage.

But others worry that the chaotic former Congressman could be more dangerous than the more constrained Mitt Romney, who most Democrats presumed would be the eventual nominee.

“He does not carry Wall Street baggage, one Democrat strategist told the Washington Post. “He’s really smart. He’s definitely authentic.”

Comment: …in the end the Revenue Service concluded there was not a problem. There’s practically nothing of substance there. But his attacks on Clinton for lying about his bimbo when Gingrich had his own bimbo situation is another matter…

Those that are concerned with the latter should look into what his daughters and ex-wife have said. If they’re not angry, no reason I should be.

I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...

December 5th, 2011
7:45 pm

Cory Feldman, 40, himself a survivor of childhood sexual abuse, unflinchingly warned of the world of pedophiles who are drawn to the entertainment industry last August. “I can tell you that the No. 1 problem in Hollywood was and is and always will be pedophilia,” Feldman told ABC’s Nightline. “That’s the biggest problem for children in this industry… It’s the big secret.”

And, of course, they are all liberals.

hryder

December 5th, 2011
8:36 pm

Another example of B.S., M.S., and Ph.D.! Vote all incumbents out of elected office in the November, 2012 elections.

s

@@

December 5th, 2011
8:47 pm

KylesOnly34?

December 5th, 2011
8:58 pm

How old are you Kyle? A few days back a column suggested your age but did not give it exact. If you are 34 or so, it’s amazing how smart you are at your age. And conservative smart too. So tell us your age please.

lester maddox

December 5th, 2011
9:05 pm

“If they’re not angry, no reason I should be.” What a load of manure. Ask the ex-wives how they feel.

Here’s Marianne Gingrich’s take on her ex.
“He could have been president,” she explained. “But when you try and change your history too much, and try and recolor it because you don’t like the way it was or you want it to be different to prove something new . . . you lose touch with who you really are. You lose your way.”

Marianne Gingrich suggested that her ex-husband “believes that what he says in public and how he lives don’t have to be connected” and added, “If you believe that, then yeah, you can run for president. …

Hillbilly D

December 5th, 2011
9:12 pm

“believes that what he says in public and how he lives don’t have to be connected”

That would fit most politicians that I’ve known, Federal, State and Local.

lester maddox

December 5th, 2011
9:49 pm

True Hillbilly, but most ain’t running for president.

@@

December 5th, 2011
10:43 pm

lester:

I was talking about his family issues, not the fact that he’s a politician.

==================================

Everybody’s talkin ’bout their favorite weapons over at jay’s. Mine?

A Daisy.

ping…ping…ping ping ping.

Michael H. Smith

December 6th, 2011
1:24 am

Politicians seeking re-election best defeat bad deals. The voters are restless and frustrated, in a throw the bums out mood.

Lynnie Gal

December 6th, 2011
7:45 am

What surprises me is that people act surprised about this coming deal. Of course the republican legislature wants to give taxpayer money to corporations. That’s what they do. Duh.