The following are excerpts from the JS Online article State proposal would send $250 million to certified capital companies.
Firms would keep 80% of profit, wouldn't have to repay principal
Legislation that Gov. Scott Walker says will create jobs would provide hundreds of millions of dollars in tax breaks to insurance companies, while giving control of a $250 million fund to out-of-state financial management companies that would not have to pay back the fund's principal and would keep up to 80% of its profits.
In written testimony submitted for the hearing, Tom Hefty, the former chief executive of Blue Cross/Blue Shield of Wisconsin, called the program "the largest special interest Wisconsin tax cut in history masquerading as an economic development initiative."
The $200 million in tax credits would never have to be repaid to the state. The payback, supporters say, would come from the job creation and business growth that would result from the investments.
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