SENATE BILL: Duke’s Let’s Put Atlasia to Work Program (Law'd)

[Fmr. Pres. Duke]

Sorry, I was away for the weekend.

Anyway, in the past we basically give out tax credits to businesses who create new jobs, right? But what about new businesses that don't make any money? Giving out credits to them really accomplishes nothing because they don't pay taxes. This bill aims to allow them to cash in the credits and use them towards building their business as they create jobs. I also want this to apply to green jobs because that is still has untapped potential in our country.

The second part is a business loan program with favorable interest rates. I'll be honest and say the $50 billion was a random number. I am open to changing that to something different, whether it be higher or lower.

[Fmr. Pres. Duke]

Sorry, I was away for the weekend.

Anyway, in the past we basically give out tax credits to businesses who create new jobs, right? But what about new businesses that don't make any money? Giving out credits to them really accomplishes nothing because they don't pay taxes. This bill aims to allow them to cash in the credits and use them towards building their business as they create jobs. I also want this to apply to green jobs because that is still has untapped potential in our country.

The second part is a business loan program with favorable interest rates. I'll be honest and say the $50 billion was a random number. I am open to changing that to something different, whether it be higher or lower.

So you are saying these tax credits are refundable and the other ones weren't?

As far as I know, typical tax credits are redeemable when you pay the tax. If a company isn't making any money, they are not paying taxes and thus cannot take advantage of the credit. Here, I am allowing these new companies to convert the credit into cash and reap the benefits now. Tax credits for start up businesses making no money give them no help at all.

[Fmr. Pres. Duke]

Sorry, I was away for the weekend.

Anyway, in the past we basically give out tax credits to businesses who create new jobs, right? But what about new businesses that don't make any money? Giving out credits to them really accomplishes nothing because they don't pay taxes. This bill aims to allow them to cash in the credits and use them towards building their business as they create jobs. I also want this to apply to green jobs because that is still has untapped potential in our country.

The second part is a business loan program with favorable interest rates. I'll be honest and say the $50 billion was a random number. I am open to changing that to something different, whether it be higher or lower.

So you are saying these tax credits are refundable and the other ones weren't?

As far as I know, typical tax credits are redeemable when you pay the tax. If a company isn't making any money, they are not paying taxes and thus cannot take advantage of the credit. Here, I am allowing these new companies to convert the credit into cash and reap the benefits now. Tax credits for start up businesses making no money give them no help at all.

I see - though I believe if they file for taxes, they can receive a tax credit as long as it is a refundable tax credit even if they do not pay any taxes.  So is this going to be in addition to the existing tax credit, so that a business can claim both?

What existing tax credits do we have in place now? These only apply to a specific type of job (new businesses or green jobs), so maybe we can have this replace whatever is in place now for those type of jobs.

[Fmr. Pres. Duke]

We can strike the green job portion to this bill if we already hand out credits for that. The main gist of the first part is to allow new businesses to convert their credits to cash. Under the old laws, they could not do that until they were actually making money, which, for new businesses, could take a while.

That's my understanding of things at least. I forgot we included a tax credit for new jobs in the corporate tax reform bill.

[Fmr. Pres. Duke]

It changes the entire flavor of this bill! From chocolate to vanilla. I am not drinking this afternoon just so I can watch this go up in flames!

[Fmr. Pres. Duke]

If we're worried that this may compound with the incentives we included in the tax reform bill, perhaps we can clarify that it does not somehow. The tax reform bill applied to all businesses and were not cash convertible, while these are cash convertible and only apply to new businesses/green jobs.

[Fmr. Pres. Duke]

I'm fine with those changes. It's friendly in my eyes.

[Fmr. Pres. Duke]

Why would we allow banks to charge a high interest rate? The point of this is to make business loans affordable to small businesses starting out.

Or is this part of TNF's rationalization that all businesses are flush with cash and therefore none of them need help?

[Fmr. Pres. Duke]

What is the rationale for a federal loan program?   If a bank isn't willing to loan someone money for a business, how does it make sense for the government to step in?   

Because we are backing the loan and guaranteeing it to up to 85%. We are basically strong-arming the banks to do as we say.

[Fmr. Pres. Duke]

I don't know what Atlasia law says or if we have regulations in place like we have in the US, but right now, banks are sitting on a record amount of capital and loaning it out at a record low rate. Getting a loan is difficult. Do I want to go back to the days of yore when our economy almost collapsed? No.

But I do want to set up a program that says, if you don't want to loan money, we are going to give you more capital, with strings attached, and we will back them so these businesses can get capital they may need to upgrade facilities, aging infrastructure, etc. Or even loan money out to a guy who is starting a new business.

[Fmr. Pres. Duke]

Duke and I have discussed formatting a banking structure for both loan programs previously discussed.  Coordination is lacking however, in large part due to finals.  In any case, I think we've come to the agreement that we'd rather run the loan programs through a government run institution, rather than "to banks".

Yes, sorry for the delay, but thankfully I have made it through finals unscathed, so we should be able to introduce something more workable in regard to the loan provision.

[Fmr. Pres. Duke]

That amendment is fine, but I think Cinci and I decided we would rather run this through some government run organization as opposed to handing the banks the money and collective the interest payments in a secondary manner.

I'm going to try to have something written shortly, although I will admit I'm not sure which government organization to use or how exactly to structure it.

[Fmr. Pres. Duke]

Ok, do we want to set this up and funnel it through one bank or something connected to the government or just go with it as it is? I am fine either way, but I understand if some have reservations about handing banks money with strings attached (though we have done it before).

[Fmr. Pres. Duke]

What? Why do we even have a chain tax?

I am fine establishing a SBA or some equivalent agency rather than going through private banks. I do want to allow municipalities to take advantage of this program if some of them want to get a loan to upgrade their facilities or better yet, invest in green technology. If we can ensure that, I am all for this compromise.

Cinci and I were discussing funneling this program through a government agency anyway.

[Fmr. Pres. Duke]

We already give out incentives for green jobs, apparently, so it was redundant.

[Fmr. Pres. Duke]

I don't understand why we have a tax on chain stores. Sure, I don't like them, but taxing them seems to be a bit silly. Some of these chain stores are good for the lower income folks who cannot afford to shop at boutiques and the like. Yes, I understand that many of them are knocked because they pay lower wages, but in Atlasia, we have much higher wages.

I don't know much about what the SBA does, but if we can use it as a vehicle to implement the business loan program in a manner that I'd like to see it used, then I am okay with it. I am fine funneling it through our private banks, but I understand that might be a dealbreaker for some, and I want to make sure we pass this program in some form, even if it is through the SBA or some other governmental organization.

[Fmr. Pres. Duke]

We're ready for a final vote here if everyone else is.

[Fmr. Pres. Duke]

Vote on the Duke’s Let’s Put Atlasia to Work Program:

Aye (6): Goldwater, bore, shua, Yankee, Lumine, and Tyrion
Nay (1): TNF
Abstain (0):

Didn't Vote (3): Griffin, DC, and Alfred

The bill passes and is sent to the President for executive decision.

x Duke

Woohoo!