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Spencer, Matt
From: Sent: thomasrhefty Tuesday, May 17, 2011 3:33 PM

To: Cc:
Subject: Attachments:



T1!!lYs'" Rep.Kapenga;



CAPCO legislation pending in the state legislature Statement on AB 129 and S6 94 Thomas R. Hefty May 16th.pdf

Greetings from California. Attached is a statement which I submitted yesterday to the joint Assembly and Senate hearings on the CAPCO legislation. Senator Lazich has withdrawn her support from the bill. The proposed $200 million tax cut is the largest single Wisconsin corporate tax cut in history. Yet it has received little attention and no debate in Waukesha County. The $200 million CAPCO cut compares to a total cost of $142 million in the January-February special session on jobs. ~vy~Cou[1JxinsuE!'lr is disadvantaged 1:J.Y...!tl!? bill. United Heartland in N~Y.i.J3er!ln.. The proposed tax cut goes only to life insurers and to out-of-state companies. These companies would receive an 80% tax credit on their investments. This compares to only a 25% credit given to individual entrepreneurs and angel investors, people who invest in the very same companies as the favored corporate investors. Similar legislation has been rejected in Iowa and Minnesota. can consider this legislation at an upcoming meeting. Thank you. Tom Hefty I hope that the Waukesha County groups


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Spencer, Matt
From: Sent: To: Mr. Hefty' Kuglitsch, Mike Thursday, May 19,20112:36 'thomasrhefty PM


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Subject: RE: CAPCO Scam

Thank you for input regarding AB-129 the "Wisconsin Jobs Act" and I would like to cornmen Q you for all your work on the "Be Bold Wisconsin" study. I agree with your recommendations In the stud Y that Wisconsin is grossly lacking in Venture Capital to invest in Wisconsin companies, which lea QS me to question your dismay on this bill. This bill complements the existing Act 255 Angel investing program to develop a compreher-, sive three pronged approach that addresses the "Valley of Death" found in the Financing Continuum.
I authored an amendment to open the Tax Credits to all Insurance companies that pay Prel""llium and Franchise taxes. I assume that would allow United Heartland the opportunity to participate it> they choose.

Please let me know your thoughts. Sincerely, Mike Kuglitsch

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From: thornasrhefty Sent: Tuesday, May 17, 2011 3:13 Pf\1 To: Rep.Kugiitsch Cc:'6: ::018 @; "liIi*' Subject: CAPCO Scam


Greetings, Thank you for taking the time to research the CAPCO issue. You are probably ~ware th t Senator Lazich has withdrawn here support from the CAP CO portion of the legislation. She has alsc asked that her name be dropped as a sponsor of the bill.
I would appreciate a response regarding the imf@cton the one insurance_c_o_m..;..p_a_n.:.y_h_e_a_d_q.:...u_~::.rt~er~e:::d~in xour district---United Heartland in New Berhn. --~.. :....-.

This is the district. In Waukesha Wisconsin

largest corporate tax cut in Wisconsin history, but it does not include any compar)y in your fact, it places United Heartland at a competitive tax disadvantage. It is puzzling to see a County Republican supporting a tax cut for out of state companies--but not a similar cut for companies.

I n~tedthat you are speaking next .week at a forum on v~nture capital. I will be back in WiSConsin and I be Interested to hear your opimons. Why do you differ from S~nator Lazlcn on this tax eLlt? And wh you do .support a bill which disadvantages a company IS your distnct. Who in your district SLipports this y legislation?

If you research the CAPCO legislation in Iowa, you will discover that the Iowa governor vetoed 'he CAPeO bill. The rationale for the veto was two fold. First, the CAPCO tax subsidy was too lar~~ lth proven cost effective impact on job creation. Second, the CAPCO proponents had miSrepr!sente~~h no bill to the Iowa legislature. Thai same misrepresentation has gone on in Wisconsin. Sadly, some go ~ Republicans have been taken in by the misrepresentations. 0
.1 do not live in your district, but I have beer. active in Waukesha County economic development

I as the chair of the Waukesha County Economic Development Corporation and as the interilt} c~unferved executive of Waukesha county. I served as CEO of Blue Cross for seventeen years and we found ~ United Heartland in 1990. -----~

Thank you for your attention to this malter. I look forward to receiving your response.

Tom Hefty.


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Spencer, Matt

thomasrheft~ Thursday, May 26, 2011 11:33 AM Rep.Kuglitsch


Subject: Thanks

Thank you for the invitation relayed thru your assistant to visit Madison to discuss venture capital. I regret that I can not join you, but I would be happy to talk with you on the telephone or to meet you for a cup of coffee. I encouraged your assistant to do a little web research on CAPCO audits in other states. Some of the Wisconsin specific CAPCO information was publicly disclosed for the first time at last Tuesday's legislative hearing. The Wilshire CAPCO had refused to provide any information for the Legislative Audit Bureau study in earlier years, but some of the Wilshire information was disclosed to the committee as an Appendix to Professor Nichols testimony. If you research that list of companies, you will understand the concern about the CAPCO model--and about the lobbyists who are promoting the CAPCO bill. ! spent 30 years in the Wisconsin insurance industry, including being an insurance regulator under Governor Dreyfus. And I was the CEO of Blue Cross Slue,Shield_when we moved our U~rtld subsidiary to New Berlin. It is a great community. Thanks again. Have a wonderful Memorial Day weekend. Tom