Tuesday, November 15, 2005


Graham Wellington is the CEO of an LLC, and he is giving the New Mexico taxpayers an opportunity to invest in Wellington’s company. The company is a start-up type of company, with an idea that looks very promising. Wellington is the Chief Executive. The LLC is WELLINGTON ENTERPRISES, a limited liability company, formed as such to protect Wellington and his partners from being personally liable for the debts of the company.

The question is whether we New Mexico taxpayers should pass a law to impose a tax to raise the money and allow one of our employees or elected officials to invest with Wellington.

Joe Sixpack, who is a taxpayer, has asked us to explain how this works. He said he read that there are Albuquerque based companies which act as brokers between the State treasury people and enterprises such as that of WELLINGTON. Taxpayer money is involved. Taxpayers are required to pay taxes to raise money for the State to lend or give to enterprises such as that of WELLINGTON and other new, start-up companies. A middleman is also involved, making a living brokering between the State treasury and the promoters, such as Wellington. The idea is that we, the taxpayers, should invest in new companies, to create jobs, etc., and we will all be better off in the long run. We could keep those taxes and make our own investments, but the government of New Mexico believes it is better that the government handle the matter.

Joe Sixpack wanted to know how this got started, and why? He wonders why WELLINGTON ENTERPRISES does not simply borrow the start-up money from investors in general. Sell stock, or bonds and raise the money. When the project becomes profitable, all get paid back. If not all goes well, then the investors lose, but they stood to gain. But what if no one will invest with WELLINGTON? The company will never get off the ground. That is true. However, is it right to force the taxpayers to pay for this venture? Is this trip necessary?

The government cannot guarantee that all the children can get enough to eat, nor get a doctor when needed. The government should prioritize and take care of first things first. Two square meals, a roof over the head, and a doctor when sick. For all Americans. No pseudo entitlement, with a waiting list. If there is a waiting list, there is no entitlement for all.

When the government provides food, shelter and a doctor, that is socialism. No doubt about it. But it is just a small amount of socialism, like an inoculation. Over and above these necessities of life, which the taxpayers should provide under the social compact, there are material goals aplenty to keep us all working and producing. That is the beauty of rugged free enterprise, material reward to the diligent, the producers. Free enterprise brings out the best in us, whether it be movie star talent, ball playing talent, lawyering talent, CEO talent, or any other talent useful in a lawful occupation. That is why the estate tax is wrong; it penalizes production. Excessive taxation does the same.

We can have rugged free enterprise, consistent with cradle to the grave security. For example, body parts are not for sale. A human heart will not be transplanted to the high bidder. Blood donors who donate blood for medical care are not paid. This taste of socialism is familiar to those who have served in the military: socialized medicine; food, shelter, clothing.

Senator Robert Dole had the right idea. In 1996 he said give them a safety net, but not a hammock. Well and good. However, a safety floor is what we need, rather than a net. A safety floor (food, shelter, medical care) is an entitlement of all Americans who stay in this country after coming of age. This is a social compact which started in 1787. “We the People of the United States, in Order to . . . promote the general Welfare, . . . do ordain and establish this Constitution for the United States of America.” As each of us comes of age and remains in this country, we agree to abide by the social compact.

We agree to go to prison for smoking marijuana to relieve ourselves of unbearable pain; we agree to go to prison for crimes and misdemeanors which we commit; we agree to pay taxes, including those imposed on us to lend or give to some start up company which the powers that be decide deserves a hand up from the taxpayers. We agree that some people (those who form corporations) can make millions per year.

We agree to some of these corporations receiving subsidies from us, the taxpayers. We agree that we and our children and grandchildren will serve in the military to fight the wars that our government chooses to fight. We the People do our part. We are entitled – not some of us; not most of us; all of us. An entitlement delayed is an entitlement denied; so no waiting lists.

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