Last month John Kasich and his wonder boy investment guru Mark Kvamme announced they would be seeking a a tax break for venture capitalists who invest their dollars in the state.
Kasich and Kvamme want to you believe that it’s tax breaks that draw investors to California, Massachusetts, New York, Texas and Washington – the top 5 states for venture capital investment in the country.
But according to the Dispatch: “Ohio already offers a tax credit to those who invest in small research-, development- and technology-based businesses. Separately, investors who give to the Ohio Venture Capital Fund Program may be eligible for reimbursement in the event of a loss.”
And as Bill Hershey reported today: Ohio ALREADY has third-lowest tax burden for new business investments.
More importantly, none of the states (Maine, Oregon, Ohio, Wisconsin, Virginia, etc) listed in the top 10 in the “Competitiveness of State and Local Taxes on New Investment” (except for Illinois) are included in the top 10 high venture capital investment list.
The fact is: offering even more tax breaks to venture capitalists may seem like a great deal for Kvamme’s business partners and Kasich’s banking pals, but it isn’t very likely to draw any more investment to the state.
Side note: Forbes released a list of the top 100 venture capitalists of 2011. Want to take a wild guess who ISN’T on the list? Mark Kvamme.
So while we did get a venture capitalist to do our economic development, according to the people that know this stuff, we apparently didn’t get a very good one .