Most readers will not have a copy of the New York Times (NYT) delivered to their doorstep each morning, and will probably miss one of the most important stories this year.
The story tells how a group of ultra-rich people, that also includes their Trump’s family and friends, are now able to invest in “Poor Areas” in cities in the United States with 100% tax breaks on the profits.
The idea is being openly supported by Trump who recently said, “Opportunity zones, hottest thing going, providing massive new incentives for investment and job creation in distressed communities.”
According to the report in the NYT, real estate developers can sell profitable investments and use the profits without having to pay tax to invest in new offices, shopping areas and apartments in designated poor areas which can be liquidated later without any tax liabilities.
The report notes that most of the new buildings are not actually in poor areas but in rather wealthier areas inside or near to low income areas. The cities have a lot of discretion to designate building sites as “Poor Areas”!
Many of Trump’s family member’s, colleagues and big banks have jumped on this bandwagon to develop real estate projects using this tax break.
The NYT quoted the president’s daughter Ivanka Trump, who said last year, “We are very, very excited about the potential. The whole White House obviously is behind the effort. The whole administration.”
The newspaper reports: “nearly a third of the 31 million people who live in the zones are considered poor — almost double the national poverty rate. Yet there are plenty of affluent areas inside those poor census tracts. And, as investors would soon realize, some of the zones were not low income at all.”
This is truly a Banana State characteristic that benefits the wealthy under the falsehood that the poor will benefit from this legislation.