, 11 tweets, 4 min read Read on Twitter
1. Largely hidden from public view is a buried 6 page Trump/GOP #taxscam provision that has triggered an obscene feeding frenzy among the super wealthy -enormous construction tax breaks for developers & their investors in newly created "Opportunity Zones". nytimes.com/2019/08/31/bus…
2. While billed as helping poor communities, Trump's "Opportunity Zones" (OZ) has instead spawned the construction of luxury high rises in areas that are already prosperous. Guys like Kushner are gorging themselves on this lucrative tax-free buffet. nytimes.com/2019/08/31/bus…
3. Here's how it works- OZ allows the super wealthy to avoid paying 15% on their capital gains by redeploying capital gains tax free into OZ construction projects. THEN sell in 10 yrs TAX FREE, eliminating depreciation recapture on the depreciation they deducted fr their taxes.
4. It is estimated that these tax free OZ provisions will boost investor returns by 70%. And here's the kicker, many of these projects were already underway prior to the #taxscam - now suddenly these buildings find themselves in the OZ and can reap an extra 70%. #OpportunityZone
5. There are already generous tax breaks for developers. NOW, the Opportunity Zone tax free construction robs the Treasury even more and the tax burden is further shifted to the middle class and and the poor. nytimes.com/2019/08/31/bus…
6.The wealthy real estate investor already had the Section 1031 tax provision and now they can avoid tax entirely. 1031 refers to rolling over the proceeds of the sale (including capital gains) of a commercial property into another property tax free. nytimes.com/2019/08/31/bus…
7.The US tax code acts like a centralized industrial policy - it directs investment into specific economic sectors and industries. It's like the Soviet planned economy, although "free market" capitalists recoil in horror at this description. But it's true. nytimes.com/2019/08/31/bus…
8. Construction projects are NOT long-term economic development strategies. OZ tax giveaways are not helping develop new or existing manufacturing,tech, clean energy, service businesses. Nor is it improving infrastructure which benefits the public and supports business growth.
9. Nor does Opportunity Zone luxury high rises help create affordable housing for the middle class and poor. And, new luxury condos do not create long-term employment opportunities. nytimes.com/2019/08/31/bus…
10. The new Opportunity Zones in fact do nothing to assist the poor neighborhoods this new tax code is purported to help. It only helps the super wealthy. It is another insidious tax scam, largely hidden from public view. nytimes.com/2019/08/31/bus…
11. The Opportunity Zone scam is yet another GOP/Trump distribution of wealth TO the already wealthy. And it will further widen US income and net worth inequality. nytimes.com/2019/08/31/bus…
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