Well, I’ll be hog-tied. Ya know that e-mail from Pryor I spoke of? It might just be a good thing. Help me find the flaw, 'cuz he’s a liberal, and I just don’t trust them folk. Here goes:
In a February 2nd article titled “Pryor debuts bill to spur business investment,” Stephens News Media discussed how the legislation could create jobs and grow small businesses in Arkansas:
"Could a proposed new tax break help create the next J.B. Hunt Transport Inc.?
"U.S. Sen. Mark Pryor, D-Ark., introduced legislation today to encourage early-stage venture capitalists to invest in small companies that have potential for significant economic growth and job creation.
"So-called ‘angel investors’ provide entrepreneurs with capital that cannot be met by traditional bank loans, often helping businesses overcome the ‘valley of death’ — the stage between start-up and profitability, Pryor said.
"His American Opportunity Act would provide a 25-percent federal income-tax credit for investments in qualified small businesses, including companies in the advanced manufacturing, aerospace, biotechnology, clean energy and transportation sectors.
"Under the measure, qualified small businesses could receive up to $2 million per year in tax credit-eligible cash equity investment, of which no more than $1 million could come from a single investor.
"The funding would stimulate an estimated $2 billion per year of new capital formation, according to the senator.
"Pryor cited concerns about declining angel investments due to the recession. He said tax incentives would lead to new growth and industries. In 2009, angel investments led to the creation of 250,000 new jobs, or about 5 percent of the new jobs created in the United States.
"‘American ingenuity will bring us out of our economic slump and help our nation regain a global competitive edge,’ Pryor said in a release. ‘My legislation fosters this growth by ensuring entrepreneurs have the capital and opportunity to succeed.’
"Pryor noted that J.B. Hunt received $25,000 from five poultry companies in 1961 to start a rice hull hauling business. Today, the $5 billion trucking company based in Lowell employs more than 14,000 workers.
“Last week, the Northwest Arkansas Council’s strategic plan cited a major need for start-up money to launch the next economic boon for the region.”
Now, while I realize that almost any good idea ought to be able to stand on its own, (which doesn’t neccessarily mean w/out a little help from a private invester), a tax BREAK for investors, might just be a good idea.
No, the “greenie” comments didn’t go by me. But what troubles me more is the part I emboldened.
What’s wrong with this idea.