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Trump Tax Break That Benefited the Rich Is Being Investigated

  

Category:  News & Politics

Via:  tessylo  •  4 years 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
Professor Principal
1  seeder  Tessylo    4 years 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
Professor Principal
2  seeder  Tessylo    4 years 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
Professor Quiet
2.1  Ronin2  replied to  Tessylo @2    4 years 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
Professor Guide
2.1.1  Split Personality  replied to  Ronin2 @2.1    4 years 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.

 
 
 
Tessylo
Professor Principal
2.1.3  seeder  Tessylo  replied to  Ronin2 @2.1    4 years 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
Junior Silent
2.1.4  squiggy  replied to  Tessylo @2.1.3    4 years ago
Why the partisan dig in the middle of a cogent ........oh never mind.

He said that, too.

 
 
 
Ronin2
Professor Quiet
2.1.5  Ronin2  replied to  Split Personality @2.1.1    4 years 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
Professor Principal
2.1.6  seeder  Tessylo  replied to  Ronin2 @2.1.5    4 years 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
Professor Principal
2.1.7  Just Jim NC TttH  replied to  squiggy @2.1.4    4 years ago

[deleted]

 
 
 
Tessylo
Professor Principal
4  seeder  Tessylo    4 years ago

Haters?  Go peddle that bullshit somewhere else?

 
 
 
XXJefferson51
Senior Guide
4.1  XXJefferson51  replied to  Tessylo @4    4 years ago

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

 
 
 
Tessylo
Professor Principal
4.1.1  seeder  Tessylo  replied to  XXJefferson51 @4.1    4 years ago

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

 
 
 
Greg Jones
Professor Participates
4.1.2  Greg Jones  replied to  Tessylo @4.1.1    4 years ago

Keep it civil and non-personal , Tessylo.

 
 
 
Tessylo
Professor Principal
4.1.3  seeder  Tessylo  replied to  Greg Jones @4.1.2    4 years ago

Go peddle your bullshit somewhere else Greg.  

 
 
 
Trout Giggles
Professor Principal
4.1.4  Trout Giggles  replied to  Greg Jones @4.1.2    4 years ago

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

 
 
 
Tessylo
Professor Principal
4.1.5  seeder  Tessylo  replied to  Trout Giggles @4.1.4    4 years ago

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

 
 
 
Perrie Halpern R.A.
Professor Principal
5  Perrie Halpern R.A.    4 years ago

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

 
 
 
JBB
Professor Principal
6  JBB    4 years 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

 
 

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