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Government - State or Federal - Should Not Invest Taxpayers' Money in Private or Publicly Traded Businesses
State Treasurer Kate Marshall is leading the charge to invest part or all of the $50 million Nevada “Permanent School Fund” in private businesses in Nevada. Marshall calls these funds “non-tax” dollars, but nothing could be further from the truth. These federal taxpayer dollars were given to Nevada to create an endowment, the interest from which would be used to support public schools. Because interest rates are so low, our Nevada Treasurer got the idea that Nevada could receive a better return by investing in equity investments in Nevada businesses or businesses that are coming to Nevada.
The fact is that instead of waiting for more normal times when interest rates are higher and when a $50 million dollar fund could return $2 to $3 million a year invested in US Treasury notes or very high quality bonds, she wants to invest Nevada’s Permanent School Fund in much riskier investments. Even the savviest investors and business people are having a difficult time making money on private equity investments today. What happens if the “Permanent School Fund” investments in private equity lose money? How are the losses made up?
Business people are not investing money today because of the uncertainty of the economy, and the economy will not change until policies are changed in Washington, DC. Taxpayers’ money should not be invested in equity investments. It is the private sector that should make these investments, and they will when they can calculate a return on investment. This is not to say that other taxpayer dollars could not be invested in critical research, i.e., medical research for serious diseases and illnesses, etc. However, this is not the purpose of the "Permanent School Fund".
Keystone Corporation - October 18, 2011
Please See The Story Below
Investment program will fund businesses
Chris Sieroty
LAS VEGAS REVIEW-JOURNAL
Oct 13, 2011
The state of Nevada has $50 million to invest in technology, manufacturing, biotechnology and other industries located here or interested in moving to the Silver State.
Overseeing this private equity investment fund is the newly formed Nevada Capital Investment Corp. The investmentprogram, which is a first for Nevada, was created by Senate Bill 75 and approved by the 2011 Legislature.
The fund's resources will come from the state's Permanent School Fund.
Read The Full Artcle Here
Keystone's Mission:
To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.Keystone's Goals:
- To focus on candidate support on state legislative races and the governor's office.
- To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
- Support limiting Nevada state government spending to the rate of population growth.
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Quote:
"The directory of federal regulation has increased to more then 81,000 pages. If you read one hundred pages a day every day, it would take over 2 years to read. Every year regulatory compliance costs US businesses $1,750,000,000,000." economic freedom October, 11 2011
Economic Freedom in America Today
For years the United States has been a world leader in economic freedom. But runaway government spending and burdensome regulations have caused a decline in economic freedom in the United States. If our economic freedom continues to fall, how will it affect our quality of life?
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