Tax Credits

I’ve always been surprised by the support of tax credits on the right. I think that the idea of giving away free tax deductions feels better than giving away the same money after you collected it. There surely would be no cash money for a 40% film tax credit to film  this show in Old Greenwich, or turn Thataway on Greenwich Avenue into a gay bar for the day, but who notices if its tax credits. And believe it or not, you can give them away – write on your napkin “I give you $500 in Connecticut bottom line tax deductions” and you can pay your dinner check.

I’ve been involved in writing applications for Low Income Housing Tax Credits in a few states, nobody whines about the tax credits, just the people who use them. But this one, even the haters have to give the Governor credit. Who can complain?

9 Comments

Filed under Uncategorized

9 responses to “Tax Credits

  1. John

    do you get your health insurance from the state like chris does?

  2. HG

    Isn’t this program begging me to give my son $1 million to start a “clean technology” business, pay himself a nice salary for a few years and then close up shop with another round of tax deductions all around? And my family will have collected $250k from the state for nothing?

    • I suppose there is a way to game anything, but if you are calculating your anticipated rate of return on an angel investment, this helps make it a lot better, rewards in-state investment and creates jobs. And there is nothing to say it needs to be “clean technology”.

  3. Fred2

    Tax credits are an abomination.

    Basically they are the use of tax system to influence behavior in a specific manner rather than keep taxes low, simple, and letting people get on with making their own stupid decisions.

    But government types LOVE them, the problem with good government ,where the government minds it’s own onions, is that the opportunities for graft, rewarding (certain) people and generally applying the people monies to “worthy” causes is minimal.

  4. nick

    You don’t get it. When an investment decision is not made purely on a deal’s merits and considered risk but other benefits the result is not an open and free market . In this case 25% hard bucks for taking a “flier”, clouds the decision. For other Ct. companies and taxpayers they are stuck subsidizing the deal. For existing competitors they are screwed by having the State engage in unfair competition. Malloy and his team couldn’t create a profitable business if they had to.

  5. Daniel

    I agree. These “programs” are enacted by both the Red Team and the Blue Team. That is what is wrong. Both parties funnel money to their respective favored groups. And the unconnected watch and get hoodwinked by the bullshit teams of spinners. But it keeps happening until it doesn’t.

  6. Hu Nhu?

    “The haters?”. Toto, we’re not in Selma anymore…..

  7. MC

    For Greenwich:

    What is the maximum eligible income, which is 60% of the area’s median income adjusted for household size as determined by HUD?

    Rent would be calculated as 30% of the 60%???

    Are an individuals Social Security “Disability” insurance payments considered ‘income’ in the above scheme?

    Are an individuals Long Term Disability insurance payments also considered income for the above scheme?