The scam of the Republican tax break

https://www.cato.org/blog/new-york-times-opportunity-zones

Here is just another reason why McConnell rammed the tax break through in a few weeks and no hearings.

Opportunity zones were supposed to provide housing, businesses and investments in poorer neighborhoods. Instead, high rises, office parks and upscale shopping areas are going up in already gentrified or otherwise misclassified areas.

CATO argues that such investments need to be local instead of part of a federal tax bill. I tend to agree.

But as the blog points out, it was a scam from day one to enrich the already rich with minimal impact for downtrodden areas.

And you can bet that as major developers, Trump, Kushner, et.al. will likely benefit handsomely.

And infrastructure? What infrastructure? Long term bonds are dirt cheap but GOP fat cats are just sitting while our roads and bridges crumble. More than likely so they can turn public assets into private piggy banks.

Trump is scrambling to scrape money from DOD for the wall. Roads, a major campaign promise, goes the same way as his “beautiful” health care bill. The bill we were to see in a couple of weeks 2 years ago.

6 thoughts on “The scam of the Republican tax break

  1. There has been a LOT of analysis done, and still being done on this thinly vailed gift to select groups and industries.

    I’m sure “Al” would go apoplectic and into great detail on the machinations of big businesses’ control over politics and the economy.

    Given the brazen creation of an unfair economic playing field created by this legislation I’d be hard-pressed to argue the point.

    Liked by 2 people

  2. This is not about enterprise zones. This is about the theft of American dollars from people like you and me

    By giving themselves a tax break by a loophole in a supposedly beneficial program in order to pay less taxes so we have to effectively pay more through increased debt.

    A bank robber has more integrity than the scum who passed that tax bill behind closed doors.

    I think that is really a clearer explanation of what happened in Trump’s corrupt party.

    The efficacy of opportunity or enterprise zones is not the real issue.

    Liked by 2 people

    1. That’s how sausage is made.

      The corporate tax cut is what produced the benefits and if it could have been passed on its own that would have been better, but to get it through Congress, other interests had to have their sweeteners.

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      1. …other interests had to have their sweeteners.” Horse Feathers! The bill was a gift to corporations and to those at the upper levels of the economic ladder. There were no other interests and they all got what they wanted. Permanent tax cuts for the top. Expiring tax cuts to the middle class. That alone was backwards for those who claimed to be doing for Main Street what they were actually doing for Wall Street. Trickle down has never worked. Just because Trump is in office isn’t going to change that fact.

        Definition of insanity: Doing the same thing repeatedly and expecting a different outcome.

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  3. I read the Cato piece differently.

    The writer offers a variation on the theme that economic central planning tends to be dysfunctional. In this case, the dysfunction isn’t particularly tied to Trump or to the GOP, although both were main actors in the events which created the 2017 initiative. Instead, it is the same dysfunction we see with all central-planning projects.

    The Obama administration did the same thing, but he called his planned communities “Promise Zones.” And before Obama there were “HUBzones,” an SBA boondoggle for federal contractors.

    The take-away from Cato is simply that the federal government should probably avoid initiatives like these. I agree with that.

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