Progressive Oregon has just learned the Oregon Senate might vote TODAY on the creation of a new tax credit being pushed by an out-of-state venture capital firm. It could cost the state a whopping $78 million over five years!
Tell your state senator to vote NO on this new corporate giveaway.
This bill (SB 817) would create a state version of the New Market Tax Credit (NMTC). This lovely-sounding program is supposed to help fund economic development in low-income communities by providing investors with generous tax subsidies.
However, it is a Missouri-based venture capital finance firm called Advantage Capital Partners that has led the lobbying efforts in the Oregon legislature for the subsidy.
Q: Why would an out-of-state venture capital firm be leading the push for a tax break billed as helping low-income Oregon communities prosper?
A: M-O-N-E-Y!
As Bloomberg News found in their report "Rich Take From Poor as U.S. Subsidy Law Funds Luxury Hotels", this tax break can be very lucrative for Wall Street companies. Their investigation discovered the NMTC being used for a more than 300 upscale projects, including hotels, condominiums, office buildings and a car museum, on streets far from poverty.
Must-see video about how corporations abuse the New Market Tax Credit:
Oregonians need to tell their state senators to oppose another tax break for Wall Street.
I know legislators are eager to get out of Salem and enjoy the summer. But we need our elected officials to carefully examine who is really behind the push to divert millions on this new tax break which we should be investing in schools and healthcare.
P.S. Despite lots of talk about jobs in Salem, under SB 817 the tax dollars are doled out without any specific requirements that jobs be produced.