National Dialogue on
Entrepreneurship


Week of September 6 - September 10, 2004


Welcome to the National Dialogue on Entrepreneurship, an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through e-News, we bring you short summaries and analyses of various trends driving the innovation economy. Current and archived issues of e-News are available online at www.publicforuminstitute.org/nde/news/enews.htm. To subscribe, visit www.publicforuminstitute.org/nde/join/

Links to the day's entrepreneurship stories from across the nation and around the world are posted each weekday at www.publicforuminstitute.org/nde - bookmark it and stay informed about the latest entrepreneurship news. 


A Note To Our Readers

We trust that everyone enjoyed their Labor Day weekend and here at e-News we are ready to get back to work. In the July 26th issue, we reviewed some of the highlights of the Democratic Party platform. This issue of e-News takes a quick peek at the other side of the aisle – from the recently completed Republican National Convention. 


Republican Platform Highlights

Republicans have returned home after their 2004 Convention in New York. In addition to re-nominating President Bush as their candidate for President, the delegates also approved a platform for this year’s election. Some of the economic highlights of the 2004 Republican Platform include the following:

  • Make the President’s 2001 tax cuts permanent. This earlier tax cut package lowered all income tax rates and also quadrupled expensing limits for investments by small businesses.

  • Create several new tax-favored accounts, including a new Lifetime Savings Account (LSA) to stimulate savings.

  • Continue implementing tax incentives and other support for small business such as:

    • elimination of the estate tax

    • expanding contracting opportunities for small firms

    • enforcing trade agreements and expanding access to foreign markets

  • Support for meaningful tort reform. As the platform puts it: “If small business is America’s economic engine, trial lawyers are the brake.” 

  • Support for legislation that allows small employers to collaborate in offering Association Health Plans (AHPs). 

To access the 2004 Republican Party Platform, visit http://www.gopconvention.com/platform/2004platform.pdf


State Tax Incentives for Equity Investment

Ten years ago, if you asked a state government official about tax credits for equity investments, you likely would have been answered with a blank stare or some reference to a revolving loan fund. Thankfully, state policies are much more sophisticated today as more state governments seek to support investments in new and emerging businesses. A new study from the Community Development Venture Capital Association (CDVCA), State Tax Credit Incentives for Equity Investments: A Review of Current Practices, highlights this progress. Eighteen states now offer tax credits to equity investors, with most of these programs coming on line in the past five years. These credits typically fall in the range of 20-40% of the value of each investment, but some special programs, such as Hawaii’s program for technology financing, provide a 100% credit. The Midwest and the Mississippi Valley seem to be centers for innovation in this field. 

To view the July 2004 CDVCA report, State Tax Credit Incentives for Equity Investments: A Review of Current Practices, visit http://www.cdvca.org/pdf/State_Tax_Credit_Survey_July2004.pdf


Knowledge Clusters and Entrepreneurship

If you just happen to be in Minneapolis on September 13 or 14, you might want to stop by an interesting conference sponsored by the University of Minnesota’s Humphrey Institute of Public Affairs. The conference, Knowledge Clusters and Entrepreneurship in Regional Economic Development, examines how public policies designed to spur the development of innovative business clusters can be effectively aligned with programs that support entrepreneurship. Many of the nation’s (and the world’s) leading experts on these topics will participate in the event, and a series of conference papers have been made available to the public.

To learn more about the Knowledge Clusters and Entrepreneurship in Regional Economic Development conference and access papers from the event, visit www.knowledgeclusters.com



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Mark Marich, Editor - mark@pfidc.org