Repeal Opportunity Zones

Abstract

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