[luau] Act 221

[R. Scott Belford]

> It has come to a time when we need to bite the bullet and do what we set
out
> to do. We may loose money on the front end but it will be an enormous gain
> in the long run. There is no reason to give up those long term gains for
> short term pitfalls.

> maddog

It is true, as Ted has pointed out, that there are tax credits even if you
do not owe taxes.  What this means is that if one has a qualified company,
the credits you hear about are not meant to offset earnings.  They are paid
regardless.  This is very unusual, very aggressive, and for some, very
questionable.  The fact is, an offer like this is bound to be abused.  As
Don has said, it is up to our Tax Department to prevent this.

We are uniquely challenged here when it comes to establishing a Technology
industry.  The frightful cost of living and perceived heavy-handed union
influence do not help.  Act 221 is a brilliant use of government funds, seed
capital if you will, to invite a diversified group of investors,
entrepreneurs, and qualified workers to our island.  I find it a perfect
balance between conservative trickle-down economics and traditional liberal
subsidies.  We need this kind of innovation to foster growth in our
challenged environment.

If not Act 221, what would one propose?  We could have a government funded
tech center at the same cost or more.  We could do nothing and hope that the
good weather alone attracts business growth.  We could try targeted tax
breaks, but in the end I doubt that we could produce a more promising plan
than Act 221.

scott