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Trump signs executive order to promote investment in urban communities

NPC D4617 said:
https://www.washingtontimes.com/news/2018/dec/12/trump-sign-executive-order-opportunity-zones/

I know everyone here wants to ignore stuff like this, so Ill post it.

Its a lot easier to just see negative things when thats all you look for. But there are actually things Trump is doing that are good.
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My initial thoughts on this program.
The good:
1) This tax break will result in increased investment/development to the designated areas.
2) Increased investment will create job opportunities for those in the area.
3) Increased investment will improve the services available in these areas.
4) Increased job opportunities and services will improve desirability of area.

The bad:
1) This tax break seems to be only for capital gains. This means the benefit is only available after selling property, which encourages short-term investing.
2) As desirability of an area increases, the cost of living increases, making it harder on the most economically burdened.
3) It is not clear if this will creates more investment or just shift investment from upper/middle class areas to low income areas. If it does not create more investment it would reduce the living quality of areas investment is shifted away from. Furthermore, if this does not create more investment this tax break will actually reduce the taxes received by the IRS. So, it could be both shifting investment away from the middle class areas, and increasing the relative tax burden on the middle class (since poor don't pay and it gives a break to the rich).

Overall:
1) I expect that this program will benefit low income areas, but that it will be at the expense of the middle class.
2) A more lasting impact would be achieved by providing a tax break on ordinary income to businesses within designated areas.
3) The success of this program is based entirely on which areas qualify. If areas are included that are already attractive for investment there will be no benefit, but there will be lost tax revenue.
 
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Bulletproof said:
https://www.cnn.com/2018/12/12/politics/trump-kushner-opportunity-zone/index.html

CNN "put it on blast"

The false narrative that CNN doesn't report positive info about Trump is ignorant garbage for stupid people to feed on.
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Did you read the article? Its just a spin job to make it seem like its just Trump trying help his friends.

Putting on blast means airing the story over and over. They spun it and put it to bed as quickly possible. Then got back to 24/7 news coverage of Russia. Actually, if you'll notice, the same thing will just happen with Jazzfanz posters and this thread. Including you. You have just a quick negative thought, then dip out.
 
checkbookdoc said:
My initial thoughts on this program.
The good:
1) This tax break will result in increased investment/development to the designated areas.
2) Increased investment will create job opportunities for those in the area.
3) Increased investment will improve the services available in these areas.
4) Increased job opportunities and services will improve desirability of area.

The bad:
1) This tax break seems to be only for capital gains. This means the benefit is only available after selling property, which encourages short-term investing.
2) As desirability of an area increases, the cost of living increases, making it harder on the most economically burdened.
3) It is not clear if this will creates more investment or just shift investment from upper/middle class areas to low income areas. If it does not create more investment it would reduce the living quality of areas investment is shifted away from. Furthermore, if this does not create more investment this tax break will actually reduce the taxes received by the IRS. So, it could be both shifting investment away from the middle class areas, and increasing the relative tax burden on the middle class (since poor don't pay and it gives a break to the rich).

Overall:
1) I expect that this program will benefit low income areas, but that it will be at the expense of the middle class.
2) A more lasting impact would be achieved by providing a tax break on ordinary income to businesses within designated areas.
3) The success of this program is based entirely on which areas qualify. If areas are included that are already attractive for investment there will be no benefit, but there will be lost tax revenue.
Click to expand...

You have to hold the property for 10 years before the tax is defered. It helps to read the details.
 
What the Trump supporters don’t realize is that Trump is controlled dissidence, to keep an incident like the yellow jackets in France from happening. Drain the swamp? He’d be lucky if he knew how to drain his bathtub.
 
NPC D4617 said:
You have to hold the property for 10 years before the tax is defered. It helps to read the details.
Click to expand...
I don't think the 10 year holding rule should impact any of my points, except that it will help to deter the short term investing focus (at least until you near the 10 year qualification date). More importantly, the 10 year rule significantly decreases the incentive to invest and therefore the impact of this tax break.
 
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