Repeal Opportunity Zones
Tax Notes, Vol. 169,, pp. 625-630, October 26, 2020 The Shelf Project
6 Pages Posted: 11 Nov 2020
Date Written: October 26, 2020
In this article, Johnson argues that Opportunity Zone incentives do the poor more harm than good because they destroy affordable housing and increase tenant rents. The opportunity zone provision allow deferral of capital gain if invested in an opportunity zone and the permanent tax exemption of development profits if the developed property is held for ten years. Opportunity The provisions increase the fair market value of real estate within the zone, but the poor are substantially all renters, not real estate owners and they are hurt not helped because they have no tenure and do not share in increased fair market value. Increased fair market value increases their rent.
Keywords: taxation, Opportunity Zones
JEL Classification: H29, H24
Suggested Citation: Suggested Citation