As we have been predicting, the federal government is moving to implement legislation that moves us toward a policy of socialized entrepreneurship. The National Dialogue on Entrepreneurship reports that Access to Capital for Entrepreneurs (ACE) Act of 2007 is moving forward. Why is this bad? It sets up a system that creates the potential of government picking winners and bureaucrats using the entrepreneurial economy as a tool for social engineering. Instead, we should let markets work.
The bill gives tax credits for investment in small businesses. Simple enough as it is written now. But we all know what happens. First there almost certainly will be amendments to this bill as it progresses. Then this bill will be used as a platform over time to micro manage free enterprise for various other agendas by amending the original bill and linking it to other legislation. If you don't believe me, just look at how the definition of "small business" and various small business support programs have been politicized to offer special favors to specific industries and groups of people over time.
