Trump Tax Break That Benefited the Rich Is Being Investigated

  
Via:  tessylo  •  one month ago  •  61 comments

By:   Jesse Drucker, The New York Times

Trump Tax Break That Benefited the Rich Is Being Investigated

S E E D E D   C O N T E N T


The New York Times

Trump Tax Break That Benefited the Rich Is Being Investigated





Jesse Drucker


6ac5ddf0-3256-11ea-bffd-e12ab88d1b71 January 16, 2020, 8:05 AM EST









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A construction worker at the sight of a parking garage next to the Preston, a luxury apartment development in a new opportunity zone in Houston, Aug. 14, 2019. (Brandon Thibodeaux/The New York Times)

A federal tax break meant to help poor communities that became a windfall for wealthy investors is being investigated by the Treasury Department, the agency’s deputy inspector general said Wednesday.

The inquiry is being conducted at the request of three Democratic lawmakers: Sen. Cory Booker of New Jersey, Rep. Emanuel Cleaver II of Missouri and Rep. Ron Kind of Wisconsin.

The lawmakers made their request after articles in The New York Times and ProPublica raised questions about the opportunity zone tax break.

The legislation, part of the 2017 tax overhaul, is supposed to encourage new investment in poor neighborhoods, leading to new housing, businesses and jobs. However, wealthy investors are piling into the initiative, including developers with ties to the Trump administration.

Last year, The Times reported how money eligible for the tax break — supported by both Democrats and Republicans — was going to luxury projects in affluent neighborhoods, including deals that were underway long before the tax break took effect.

In October, The Times described how financier Michael Milken stood to benefit from a move the Treasury Department made over the objections of some agency officials to permit a census tract in Nevada to qualify for the opportunity zone tax break. Milken is a longtime friend of Treasury Secretary Steven Mnuchin’s.

“Despite these warnings from staff, Secretary Mnuchin instructed Treasury officials to allow the otherwise ineligible tract to qualify for the incentive,” the lawmakers wrote in seeking the inquiry. “If the Treasury Department provided a stamp of approval as a political favor, it is not only unacceptable, but in complete violation of the congressional intent of the Opportunity Zones.”

The Treasury’s internal watchdog expects “to complete our work and respond to the congressional requesters in early spring,” Rich Delmar, the department’s deputy inspector general, said in a statement.

Other potential beneficiaries of the opportunity zone tax break, The Times reported last year, were billionaire financiers like Leon Cooperman; Chris Christie, the former New Jersey governor; Richard LeFrak, a New York real estate titan who is close to the president; and the family of Jared Kushner, Trump’s son-in-law and senior adviser.

The initiative allows people to sell stocks or other investments and delay capital gains taxes for years — as long as they put the proceeds into projects in federally certified opportunity zones. Investors can avoid federal taxes on any profits from those projects.

In late December, the administration finished the program’s regulations. Officials said the regulations gave investors more clarity and flexibility on how to deploy their money, and push more funds into designated areas.

NBC News earlier reported the news of the inquiry.

This article originally appeared in   The New York Times .

© 2020 The New York Times Company




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Tessylo
1  seeder  Tessylo    one month ago

In October, The Times described how financier Michael Milken stood to benefit from a move the Treasury Department made over the objections of some agency officials to permit a census tract in Nevada to qualify for the opportunity zone tax break. Milken is a longtime friend of Treasury Secretary Steven Mnuchin’s.

“Despite these warnings from staff, Secretary Mnuchin instructed Treasury officials to allow the otherwise ineligible tract to qualify for the incentive,” the lawmakers wrote in seeking the inquiry. “If the Treasury Department provided a stamp of approval as a political favor, it is not only unacceptable, but in complete violation of the congressional intent of the Opportunity Zones.”

 
 
 
Tessylo
2  seeder  Tessylo    one month ago

This administration of grifters, gangsters, thugs, and thieves are looting and raping and pillaging the treasury as fat as their crooked fingers allow.  

 
 
 
Ronin2
2.1  Ronin2  replied to  Tessylo @2    one month ago

You don't think the Democrats aren't exploiting this as well?

Here is all the information you need to know right from the article.

Last year, The Times reported how money eligible for the tax break — supported by both Democrats and Republicans — was going to luxury projects in affluent neighborhoods, including deals that were underway long before the tax break took effect.

Both sides supported it; which means that both sides are expecting money back out of it in the form of campaign funds, golden parachutes into boards or think tanks, or high paying lobbyist positions once they leave office.

 But of course all you can concentrate on is this.

Other potential beneficiaries of the opportunity zone tax break, The Times reported last year, were billionaire financiers like Leon Cooperman; Chris Christie, the former New Jersey governor; Richard LeFrak, a New York real estate titan who is close to the president; and the family of Jared Kushner, Trump’s son-in-law and senior adviser.

Of course anyone with links to the Democratic Party that are turned up will be quickly swept under the rug and forgotten. Which is why these Democrats are calling for the investigation.

The inquiry is being conducted at the request of three Democratic lawmakers: Sen. Cory Booker of New Jersey, Rep. Emanuel Cleaver II of Missouri and Rep. Ron Kind of Wisconsin.

Another get Trump at all costs investigation. Hopefully the Treasury Department will have the stones to conduct a fair investigation into all parties involved regardless of who they are tied to.

 
 
 
Split Personality
2.1.1  Split Personality  replied to  Ronin2 @2.1    one month ago

Yes it was a bipartisan effort to push $$ and development into poor areas, not affluent ones.

The law obviously has loopholes which are being taken advantage of.

Of course anyone with links to the Democratic Party that are turned up will be quickly swept under the rug and forgotten. Which is why these Democrats are calling for the investigation.

Why the partisan dig in the middle of a cogent ........oh never mind.jrSmiley_99_smiley_image.jpg

Hopefully the Treasury Department will have the stones to conduct a fair investigation into all parties involved regardless of who they are tied to.

100% agreed.

 
 
 
XDm9mm
2.1.2  XDm9mm  replied to  Split Personality @2.1.1    one month ago
The law obviously has loopholes which are being taken advantage of.

What law doesn't have 'loopholes'?   And a "loophole" for one is simply obeying the law for others.

 
 
 
Tessylo
2.1.3  seeder  Tessylo  replied to  Ronin2 @2.1    one month ago
'Yes it was a bipartisan effort to push $$ and development into poor areas, not affluent ones.'

The bill was supported bi-partisan

'Other potential beneficiaries of the opportunity zone tax break, The Times reported last year, were billionaire financiers like Leon Cooperman; Chris Christie, the former New Jersey governor; Richard LeFrak, a New York real estate titan who is close to the president; and the family of Jared Kushner, Trump’s son-in-law and senior adviser.'

When you see that someone other than the republicans close to this corrupt administration and 'president' are benefiting from this, get back to me.  

WHAT SP SAID!

 
 
 
squiggy
2.1.4  squiggy  replied to  Tessylo @2.1.3    one month ago
Why the partisan dig in the middle of a cogent ........oh never mind.

He said that, too.

 
 
 
Ronin2
2.1.5  Ronin2  replied to  Split Personality @2.1.1    one month ago
Why the partisan dig in the middle of a cogent ........oh never mind.

The whole article is a partisan dig. Why bother bringing in Trump backers? "Potentially benefit". What, was the media too lazy to investigate themselves? Aren't their any Democratic land developers that stand to profit from the loophole?  Why not list them as well?

I am all for finding and ending corruption regardless if they have a D or R behind their name.  I get the distinct feeling the Democrats that call for the investigation and writer of the article are only interested if it will bring down Trump. 

 
 
 
Tessylo
2.1.6  seeder  Tessylo  replied to  Ronin2 @2.1.5    one month ago

When you see that someone other than the republicans close to this corrupt administration and 'president' are benefiting from this, get back to me. 

 
 
 
Just Jim NC TttH
2.1.7  Just Jim NC TttH  replied to  squiggy @2.1.4    one month ago

[deleted]

 
 
 
XDm9mm
3  XDm9mm    one month ago

Can anyone, ANYONE anywhere, show me where poor people built affordable housing or anything else for that matter?   To the haters, here's a hint.  It takes MONEY to build something.  Unless the housing built is a cardboard box taken from the rear of an appliance store, it costs money to purchase or lease the land, hire the architects, get the construction contractors, pay for the permits, pay for the materials, etc.  There is no such thing as a housing construction fairy sprinkling building dust over vacant lots.

 
 
 
Greg Jones
3.1  Greg Jones  replied to  XDm9mm @3    one month ago

And it's likely the Democrats would want to loosen and lower credit requirements to get people into homes and businesses that they could not afford.

Didn't they ever learn from the previous housing debacle.

 
 
 
katrix
3.1.1  katrix  replied to  Greg Jones @3.1    one month ago
And it's likely the Democrats would want to loosen and lower credit requirements to get people into homes and businesses that they could not afford. Didn't they ever learn from the previous housing debacle.

I really wish you'd start reading facts once in a while. The Bush administration started that whole debacle. And it was the Republicans who repealed Glass-Steagal.

 
 
 
lady in black
3.1.2  lady in black  replied to  Greg Jones @3.1    one month ago

Nope, it was the republicans that caused the housing crash

 
 
 
Dismayed Patriot
3.1.3  Dismayed Patriot  replied to  katrix @3.1.1    one month ago
it was the Republicans who repealed Glass-Steagal.

Technically, it was the Republicans (Gramm-Leach-Bliley) who wrote the bill, got it passed through a republican controlled house (138 Democrats voted for it along with 205 Republicans) and passed with 1 Democrat defector in the senate (53 Republicans plus 1 Democrat vs 44 Democrats against), then got the recently impeached lame duck Democrat President Bill Clinton to sign it.

https://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act

 
 
 
XDm9mm
3.1.4  XDm9mm  replied to  Dismayed Patriot @3.1.3    one month ago
Democrat President Bill Clinton to sign it.

Ergo, a Democrat President owns it.  Period end of story.

 
 
 
katrix
3.1.5  katrix  replied to  XDm9mm @3.1.4    one month ago

It's not nearly that simple. I was being somewhat facetious with Greg, but I'll be more logical with you.

There is plenty of blame to go around. Clinton signed the original Community Reinvestment Act, as I recall .. but the percentages were greatly raised by Bush. And then Obama either kept up with what Bush had done or raised them more, I can't remember. Who could argue with trying to make it possible for more lower income people to own homes, after all? It was popular politically for both parties. Even if they didn't own homes because they couldn't afford them? We can fix that ... interest only loans, no-documentation loans, all kinds of loan instruments that no savvy homebuyer would have fallen for, but low income people don't often have the financial acuity that could have made them realize what a bad idea this really was.

Then we have the pressure from HUD on the banks ... the banks giving loans they knew people couldn't repay (yes, under pressure from the government, both Rep and Dem administrations, but still ...) ... the homebuyers who knew damn well they couldn't afford what they bought, and who were willing to lie and claim they made $80k when they made $30k so they could buy a house they could never make the payments on (and who believed housing prices would keep going up exponentially) ... the builders .... Wall Street ...

Time had an interesting article on the 25 people most to blame for the crisis, and it spans both political parties and many other people and industries. It's an interesting read (for some reason it starts at 25, and you have to click the Left Arrow and move backwards through the list)    http://content.time.com/time/specials/packages/article/0,28804,1877351_1878509_1878508,00.html

There are a lot of different views on whether Glass Steagal made it possible for banks to get "too big to fail" and repealing it was the right thing ... or whether the repeal of the act led to the crisis.  Yes, this is Wiki, but it provides an overview of different viewpoints:  https://en.wikipedia.org/wiki/Aftermath_of_the_repeal_of_the_Glass%E2%80%93Steagall_Act

 
 
 
XDm9mm
3.1.6  XDm9mm  replied to  katrix @3.1.5    one month ago
There is plenty of blame to go around.

On a political basis, yes, there was more than ample blame to be shared by all.

However, regardless of "political" blame, the ultimate blame rests squarely on the shoulders of the people that took the loans knowing full well that they could never in their lifetime have the ability to pay it back, and fell for the proverbial "too good to be true" bullshit line.  I know of one case, which made the news in California, where the "buyer" was earning less than $40,000 a year buying a (grossly overpriced) $750,000 house.  (Apparently the news was trying to show how cruel the bank was for foreclosing on the property for non-payment and then got a dose of reality when they heard what she paid as opposed to what she earned, plus the fact that she also took out a jumbo mortgage and got cash back at closing with no down payment.  I mean, holy-shit batman you can't make this nonsense up!!)

I had personal experience with RE agents trying to sell me grossly overpriced properties using the BS line, of flipping it and making a killing.  Hell, I personally knew people that had buyers lined up for properties before they even closed on the property themselves!

I also made out like a fat rat when the market collapsed.   I bought a number of properties in VA that were foreclosed on and paid essentially pennies on the dollar to the bank, made some repairs vengeful "owners" made when they trashed the places as they got kicked out, and either rented them or sold them myself.   All of my VA properties were sold when I moved to TX, (I refuse to be an 'absentee' landlord.) and reinvested here in local properties.

 
 
 
katrix
3.1.7  katrix  replied to  XDm9mm @3.1.6    one month ago

I tend to agree with you, that the ultimate blame rests on the people who took the loans.

And I left out how many people used their equity as an ATM ...

My former neighbors talked about how much they made, so I knew that I made more than both of them combined. I don't have kids, and they have 2 kids. Yet they were always buying things which I couldn't have reasonably afforded. Turns out they kept taking out equity as the value of their house rose. They at least got smart at the end - sold the house before they lost it and moved to a cheaper area, and became very frugal. Not only did the value of their house drop, the husband had a small construction company so it was a double whammy - not enough work and much higher mortgage payments.

I honestly have no idea how much my house was worth at the market peak back then; I certainly wasn't going to be using my equity as an ATM!

 
 
 
XDm9mm
3.1.8  XDm9mm  replied to  katrix @3.1.7    one month ago
And I left out how many people used their equity as an ATM ...

Very true.  In some cases, it was a wise move, in others, well.......   In my sons situation, it was fine.  He used the equity to finance a larger single family home on about 5 acres while he rented his townhouse for a year and then sold it making a major profit.  Some of his friends used the equity to buy their BMW's, go on vacations, and enjoy the good life.....  until all the bills came due.  Some even lost their jobs since they declared bankruptcy and that's a major no-no when you have a high level clearance.

I honestly have no idea how much my house was worth at the market peak back then;

In reality, it was a fictitious number created by people with an inherent interest in proving how valuable real estate was/is.  Real estate brokers/agents.  

In VA there was a local broker (Purcerville) who was herself caught up in the schemes.   Her "company" was the broker/agent for a number of Toll Brothers townhouse developments.  She was the largest buyer of TH's there and was pushing the prices up 10-20 or even 30k per unit in a weeks time.  Her brokerage expanded exponentially and she had multiple locations throughout Loudoun County with a big stable of "Real Estate Agents" doing her bidding and selling her properties as they were immediately available.....   until the bust.   She's now working solo in a small strip mall type office and drives not the big Mercedes (multiple models, I guess predicated on the day of the week)  she had, but a little Ford Escape.   Oh, how the high and mighty fell!!!   

 
 
 
katrix
3.1.9  katrix  replied to  XDm9mm @3.1.8    one month ago

The brokers and RE agents kept telling the prospective buyers that the prices would just keep going up.

But that doesn't mean the poor suckers should have believed them.

An interesting and fairly short read is "Markets, Mobs, and Mayhem."

 
 
 
XDm9mm
3.1.10  XDm9mm  replied to  katrix @3.1.9    one month ago
The brokers and RE agents kept telling the prospective buyers that the prices would just keep going up.

And of course their own interests never factored into that bit of deception!!  LOL   When they use lines like, "You really need to buy now because there are other offers on the table."  or  "If you don't buy now, it will probably be sold when you make the decision." the "buyer should run to the hills ASAP. 

But that doesn't mean the poor suckers should have believed them.

As is often said;  "A fool and his money."  or the ever ubiquitous "A sucker is born every minute." come immediately to mind.

If the "buyer" didn't know or understand what he/she was getting involved with, he/she never should have gotten involved in the first place.  Hell, simple math skills should have told them that a GROSS income of $400 a week was not going to cover a $2,000 dollar a month mortgage, even factoring in deductions for interest and taxes.  

An interesting and fairly short read is "Markets, Mobs, and Mayhem."

There are so many tales of the madness, it would take a lifetime to read them all even if that's all one did all day every day!!

 
 
 
Trout Giggles
3.2  Trout Giggles  replied to  XDm9mm @3    one month ago
Can anyone, ANYONE anywhere, show me where poor people built affordable housing or anything else for that matter?   To the haters, here's a hint.  It takes MONEY to build something. 

You're absolutely right, it takes money to build. So who's going to build in the poorer neighborhoods? You? Your construction buddies on NT?

 
 
 
XDm9mm
3.2.1  XDm9mm  replied to  Trout Giggles @3.2    one month ago
You're absolutely right, it takes money to build. So who's going to build in the poorer neighborhoods? You?

Actually, yes I have.  I own several properties in "poorer neighborhoods".  Granted, I didn't do the original build, but I bought vacant trashed houses, refurbished them and now have some nice rental properties.   After my investment, some other local homeowners improved their homes increasing my property values in the process.  So you see, it really is a simple process if one is inclined to take the chance.

 
 
 
Trout Giggles
3.2.2  Trout Giggles  replied to  XDm9mm @3.2.1    one month ago

I wouldn't call it simple

 
 
 
Steve Ott
3.2.3  Steve Ott  replied to  XDm9mm @3.2.1    one month ago
increasing my property values

And thereby increasing your taxes, which will in turn increase your asking price, which will in turn make fewer renters/buyers available. You may get more in the end, but transactions always have a winner and a loser. (I traded options for years) I don't imagine for one minute you care about the loser, until it is you, then it will most likely be "unfair".

Now, I may be painting you with the broad brush of the real estate owner, but hey, it's a risk you take. But the real point of all of this is, is increasing the value of your holdings really worth it to others and yourself, if it is only taxed away? In the end, the only real winners are the taxing authorities. 

 
 
 
XDm9mm
3.2.4  XDm9mm  replied to  Trout Giggles @3.2.2    one month ago
I wouldn't call it simple

It really is if you understand it and know what to do.  Hell, there are plenty of community college classes available to help you along.  It provides some satisfaction along the way, and a great revenue stream for retirement.   

 
 
 
XDm9mm
3.2.5  XDm9mm  replied to  Steve Ott @3.2.3    one month ago
And thereby increasing your taxes,

Since your experience is in options, you likely aren't aware of the methods and means to lower property taxes or to fight any purported valuation increases.

Besides, as business expenses, taxes are deductible against rental income so I'm never hurt financially.

In the end, the only real winners are the taxing authorities.

As in all aspects of financial life.  Some taxes are of course a necessary evil, but over taxation is detrimental to the taxing authorities as the tax payer can just up and leave.  The non-taxpayers are usually stuck in place.

 
 
 
Trout Giggles
3.2.6  Trout Giggles  replied to  XDm9mm @3.2.4    one month ago

Condescension is so very annoying

 
 
 
XDm9mm
3.2.7  XDm9mm  replied to  Trout Giggles @3.2.6    one month ago
Condescension is so very annoying

Condescension to one is education to another.  I offered an education.  It's the decision of the receiver how to view it.

 
 
 
Tessylo
3.2.8  seeder  Tessylo  replied to  Trout Giggles @3.2.6    one month ago

[deleted]

 
 
 
Steve Ott
3.2.9  Steve Ott  replied to  XDm9mm @3.2.5    one month ago
you likely aren't aware of the methods and means to lower property taxes or to fight any purported valuation increases.

Options isn't my only experience. So is pouring steel, walking red iron and oh yeah, accounting. I was the accounting manager for a real estate company for 10 years, so I have an idea.I also know how to make a real loss look like a gain, on paper. Fun stuff.

 
 
 
XDm9mm
3.2.10  XDm9mm  replied to  Steve Ott @3.2.9    one month ago
Options isn't my only experience. So is pouring steel, walking red iron

Great!!   I have no idea how people could work around the heat in the mills.   

and oh yeah, accounting.

Obviously, you finally decided to forego a blue collar job for a much easier physically white collar.   Needless to say, that was a smart move.

I was the accounting manager for a real estate company for 10 years, so I have an idea.I also know how to make a real loss look like a gain, on paper.

It's even more fun when you can do that in the opposite fashion and make a real gain in valuation and income look like a loss.   Trump did exactly that with his loss carry forward and people pissed and moaned he didn't pay taxes, even though he only played by the rules of the people pissing and moaning about it created.

Fun stuff.

That it is.   I always take advantage of the rules they've created to my benefit.   As you well know, tax avoidance is legal, tax evasion is a crime.  Unfortunately, some can't grasp the difference between the two.

 
 
 
Ender
3.3  Ender  replied to  XDm9mm @3    one month ago

Actually, if you think about it, poor people have built a lot. When government housing is built, we all pay for it.

 
 
 
XDm9mm
3.3.1  XDm9mm  replied to  Ender @3.3    one month ago
Actually, if you think about it, poor people have built a lot. When government housing is built, we all pay for it.

Try again.  "Poor people" invariably do not pay income taxes which essentially funds the government for the most part.

 
 
 
Ender
3.3.2  Ender  replied to  XDm9mm @3.3.1    one month ago

What is paid is paid. What is given as refund is given as refund.

Government accounting at work.

 
 
 
Split Personality
3.3.3  Split Personality  replied to  XDm9mm @3.3.1    one month ago

Sales taxes, everyone pays sales taxes, even the homeless and the illegal alien invaders.

 
 
 
Steve Ott
3.3.4  Steve Ott  replied to  XDm9mm @3.3.1    one month ago

Umm, no. The government is mostly funded by fake money from printing presses.

 
 
 
XDm9mm
3.3.5  XDm9mm  replied to  Split Personality @3.3.3    one month ago
everyone pays sales taxes,

One must surmise you never heard of the 'underground economy'.  Go to any flea or farmers market and see how many collect 'sales tax'.  Have a contractor come into your house and do some minor or even major work, and pay in cash and see how much tax is collected or paid by the contractor.

Taxes are as I always say a necessary evil, but there are multitudes of ways to circumvent them.  Some legal and some illegal.  It all depends on your degree of legal adherence.

 
 
 
XDm9mm
3.3.6  XDm9mm  replied to  Steve Ott @3.3.4    one month ago
Umm, no. The government is mostly funded by fake money from printing presses.

Actually an honest observation.  Once they eliminated the "gold" standard, and started issuing 'bank notes' as opposed to 'silver certificates' and other "paper" money actually back by a purported equal amount of 'precious metals' and replaced that by the 'good faith and credit' bullshit line everything changed.

 
 
 
Perrie Halpern R.A.
3.3.7  Perrie Halpern R.A.  replied to  XDm9mm @3.3.5    one month ago

That is a fraction, and I mean a fraction of taxes collected. More like go to a Walmart or Target and see how much is collected. 

 
 
 
Split Personality
3.3.8  Split Personality  replied to  XDm9mm @3.3.5    one month ago

I don't know, I have had a slab leak which involved three contractors and insurance,

hail damage, roofers and insurance,

new AC system and a variety of plumbers all in the last four years in TX and haven't seen sales tax or I would have claimed it on income tax forms like the sales tax on the solar panel lease.

Unless people are eating for free somewhere I  assume that they are paying the same rate I am. (between 6.25 & 8.25?)

As long as "we" have no income tax in TX I can safely assume that the underground economy is mostly limited to illegal activity along our southern border

or is insignificant to Austin in the big picture.

 
 
 
XDm9mm
3.3.9  XDm9mm  replied to  Perrie Halpern R.A. @3.3.7    one month ago
More like go to a Walmart or Target and see how much is collected.

It's all predicated on where you live.

Delaware, Alaska, Montana, New Hampshire and Oregon have no sales taxes.  (That's why I loved going there shopping when I lived in PA or when traveling through when I lived in VA.)

Then you have the highest "state wide" taxed states.

California, Indiana, New Jersey, Tennessee, Mississippi and Rhode Island

Then bringing up the rear are those areas with higher taxes when combined with local sales taxes, you know, like New York City.

 
 
 
XDm9mm
3.3.10  XDm9mm  replied to  Split Personality @3.3.8    one month ago
I don't know, I have had a slab leak which involved three contractors and insurance,

hail damage, roofers and insurance,

new AC system and a variety of plumbers all in the last four years in TX and haven't seen sales tax or I would have claimed it on income tax forms like the sales tax on the solar panel lease.

Texas is unique in how and what they tax.   Some things in the grocery store are taxed while others aren't.  Some home improvement activities are taxed while others aren't.   Hell, see your own solar panel example.

Restaurants do charge tax as they have more stringent accounting rules to adhere to, but how many times have you 'dined' at a food truck and paid tax?  And you know as well as I do that food trucks probably have some of the best tacos and burritos available!!

And the underground economy is huge.  It's just hard to quantify simply because it is, well, hidden.

 
 
 
Split Personality
3.3.11  Split Personality  replied to  XDm9mm @3.3.10    one month ago
And you know as well as I do that food trucks probably have some of the best tacos and burritos available!!

Ha! I wish I had my last receipt from Monday night for this place parked at a Vallero gas station on 377.

Recommended by legal peeps from downtown Fort Worth 20 miles away.

14 tacos x 1.75 = 24.50  but the bill included sales tax that  brought it up to 26.52 ( 8.25%)

320

but I get your point that the assumption is that many similar startups try to get away with not paying taxes.

 
 
 
XDm9mm
3.3.12  XDm9mm  replied to  Split Personality @3.3.11    one month ago
but I get your point that the assumption is that many similar startups try to get away with not paying taxes.

You also need to remember that some also play the game of decreasing sales taxable sales as that also decreases taxable income.   Hell, any cash business has the option of working that way.

Case in point is say a barber shop.   I tend to believe my barber does just that.  I pay cash and while it goes into the 'till', the amount never seems to be rung up on the register.  I'll surmise at the end of the day, the total cash in the till doesn't quite match the report able revenue.  I might be mistaken but I doubt it.

Another is a gun shop I use.  They recently did some work for me on one of my shotguns.  I paid cash instead of using a credit card and I saved not only the "percentage" increase the card would have received for it's use, but the ST on the sale.   He was happy, I was happy and my son will be happy when he gets the shotgun when I kick the bucket!!

 
 
 
Tessylo
4  seeder  Tessylo    one month ago

Haters?  Go peddle that bullshit somewhere else?

 
 
 
Donald J. Trump fan 1
4.1  Donald J. Trump fan 1  replied to  Tessylo @4    one month ago

No, it was directed exactly where it needed to be directed.  

 
 
 
Tessylo
4.1.1  seeder  Tessylo  replied to  Donald J. Trump fan 1 @4.1    one month ago

Why don't you go back to your oh woe is me, I'm a persecuted 'christian' seed(s)

 
 
 
Greg Jones
4.1.2  Greg Jones  replied to  Tessylo @4.1.1    one month ago

Keep it civil and non-personal , Tessylo.

 
 
 
Tessylo
4.1.3  seeder  Tessylo  replied to  Greg Jones @4.1.2    one month ago

Go peddle your bullshit somewhere else Greg.  

 
 
 
Trout Giggles
4.1.4  Trout Giggles  replied to  Greg Jones @4.1.2    one month ago

Who appointed you Hall Monitor? This isn't even your seed

 
 
 
Tessylo
4.1.5  seeder  Tessylo  replied to  Trout Giggles @4.1.4    one month ago

I guess when their only goal is to piss off libs, they go full tilt.  

 
 
 
Perrie Halpern R.A.
5  Perrie Halpern R.A.    one month ago

To the above thread, stop with the personal jabs and get back on topic. Only warning. 

 
 
 
JBB
6  JBB    one month ago

My Bronx neighborhood has been designated an official opportunity zone which has resulted in our property values here  increasing by 118% in 2019. Middle class homes and rental properties have mostly all been bought up by investors who are either demolishing older properties to build high dollar rentals which nobody from this neighborhood could afford or are converting what were divided multi-family homes into multimillion dollar personal properties. This is causing much anger today as long-term residents are being priced out of the market. Yes, what is good for some is a tragedy for others. I purchased here because it was affordable for me and because I appreciated what was a very diverse tradional working class neighborhood which was semi-unique in NYC. In just three years this part of NYC has mostly changed hands completely changing the, um, complexion of this part of the city. It all happened very quickly and it is called gentrification.  

Any pretence these tax breaks would result in more housing for working class New Yorkers is preposterous. I could not even afford to buy here anymore. Maybe I should sell out too before we become just another trendy haven for hedge fund manager and spoiled hipsters...like Brooklyn.

As an example, this 1000 sq ft single family home would have been less than half as much just two years ago. Now it is a half million $. 1146 E 213th St in Williamsbridge, Bronx, NY 10469 - $474,900 | -- bd • -- ba

See details at https://b1iw.app.link/CNPGgMKzj3

 
 
 
XDm9mm
6.2  XDm9mm  replied to  JBB @6    one month ago
As an example, this 1000 sq ft single family home would have been less than half as much just two years ago. Now it is a half million $. 1146 E 213th St in Williamsbridge, Bronx, NY 10469 - $474,900 | -- bd • -- ba

Yeah, you gotta love the bars on the windows and the dryer venting into what appears to have been the former now converted garage.  Plus. I love that nearly $3,900 a year in property taxes.

And people wonder why I left New York in the 80's.

 
 
 
Perrie Halpern R.A.
6.2.1  Perrie Halpern R.A.  replied to  XDm9mm @6.2    one month ago

The cities in Texas are every bit as expensive to buy in. Austin is insanely priced, too and doesn't have low property taxes. 

 
 
 
XDm9mm
6.2.2  XDm9mm  replied to  Perrie Halpern R.A. @6.2.1    one month ago
Austin is insanely priced, too and doesn't have low property taxes.

Simply another reason Austin is known as WEIRD.

Keep Austin Weird is the slogan adopted by the Austin Independent Business Alliance to promote small businesses in Austin, Texas . It is intended to promote local businesses and is inspired by comments made by Red Wassenich in 2000 while giving a pledge to an Austin radio station.

Source:  https://en.wikipedia.org/wiki/Keep_Austin_Weird

However, I'll do a stare and compare between Austin and anyplace in NYC or Long Island any day of the week to compare taxes and costs.  I know which will come out better.

 
 
 
GregTx
6.2.3  GregTx  replied to  Perrie Halpern R.A. @6.2.1    one month ago
"The cities in Texas are every bit as expensive to buy in. Austin is insane too and doesn't have low property taxes." Fixed it 😁 (sorry I couldn't resist, it was nagging at me)
 
 
 
JBB
6.2.4  JBB  replied to  XDm9mm @6.2    one month ago

Also, note that the same property sold for only $160,000 in June 2017. I cannot imagine the "invester" put more than $20,000 worth of upgrades into it. The first sale after that for about $450,000 was probably a sham sell to up the price history. This kind of price inflation is normal in The Bronx in the last few years and it because of the tax breaks given to "investers" who bought up minority owned homes cheap, did minor upgrades and then made mad profit selling them to much richer people basically forcing working class people out. 

 
 
 
XDm9mm
6.2.5  XDm9mm  replied to  JBB @6.2.4    one month ago
Also, note that the same property sold for only $160,000 in June 2017.

What exactly is your point?   

I cannot imagine the "invester" put more than $20,000 worth of upgrades into it.

I have no idea what it originally looked like, and obviously neither do you, so your imagination has little if any relevance.

The first sale after that for about $450,000 was probably a sham sell to up the price history.

Really?  Smart investors buy other similar properties in the area for much less, improve them themselves and ride the wave of area appreciation.  I don't know anyone that does what you "think" happened.

 
 
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