Payday during the mill. just just How financiers that are sophisticated a Maine investment system they devised to wring vast amounts in risk-free comes back at taxpayer cost

Payday during the mill. just just How financiers that are sophisticated a Maine investment system they devised to wring vast amounts in risk-free comes back at taxpayer cost

Relevant Headlines

  • Proposed Maine requirements for company taxation credits draw concerns, warnings
  • Maine leaders want modifications to tax-credits program

Sometime this current year, their state of Maine will cut two checks well well well worth a complete payday loans in California of $2.8 million and mail them to out-of-state investors. The following year, it will probably deliver two more checks, well well well worth $3.2 million, to your exact same recipients. It shall duplicate that procedure for the following 36 months until approximately $16 million of taxpayer cash happens to be withdrawn from Maine’s General Fund.

This payout of taxpayer bucks through will likely make a commitment whole their state built to encourage that which was – on paper – touted as a $40 million investment into the resurgence associated with Great Northern Paper mill in East Millinocket.

However the resurgence failed. Per year following the investment ended up being gotten, the mill’s owner, personal equity company Cate Street Capital of Portsmouth, New Hampshire, shuttered the mill and laid off a lot more than 200 individuals. Great Northern filed for bankruptcy a couple of months later on with an increase of than $20 million in unpaid bills owed to regional companies, making many to wonder just just just exactly what took place compared to that $40 million investment that has been designed to save yourself the mill.

The truth is nearly all of that $40 million had been a mirage.

Great Northern ended up being the first ever to make the most of a comparatively brand new, and complex, state program called the Maine brand brand New Markets Capital Investment system, which supplies tax credits to investors whom straight straight right back organizations in low-income communities. Tax credits could be used to lower the number of Maine tax they owe. Continue reading “Payday during the mill. just just How financiers that are sophisticated a Maine investment system they devised to wring vast amounts in risk-free comes back at taxpayer cost”