Repeal Opportunity Zones

Tax Notes, Vol. 169,, pp. 625-630, October 26, 2020 The Shelf Project

U of Texas Law, Law and Econ Research Paper

6 Pages Posted: 11 Nov 2020

See all articles by Calvin H. Johnson

Calvin H. Johnson

University of Texas at Austin - School of Law

Date Written: October 26, 2020

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

Suggested Citation

Johnson, Calvin Harsha, Repeal Opportunity Zones (October 26, 2020). Tax Notes, Vol. 169,, pp. 625-630, October 26, 2020 The Shelf Project, U of Texas Law, Law and Econ Research Paper , Available at SSRN: https://ssrn.com/abstract=3725846

Calvin Harsha Johnson (Contact Author)

University of Texas at Austin - School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States
512-232-1306 (Phone)
512-232-2399 (Fax)

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