Thursday
June 18
2020

‘Opportunity Zones’ Fall Short on Helping Low-Income Communities, Study Finds

By Robert Frank

“Opportunity zones,” a cornerstone of the White House plan to combat racial inequality, have mainly helped large real estate projects while many low-income communities have yet to benefit, according to a new study.

The plan, which was part of the 2017 tax cuts and have attracted over $10 billion in investments, has taken center stage in the Washington debate over racial injustice and inequality.

President Donald Trump, Treasury Secretary Steven Mnuchin and many Republican members of Congress have touted opportunity zones as a way to create jobs and lift up underserved communities and minority-owned businesses. Critics say the program, which offers tax breaks to the wealthy to invest in designated projects, lacks transparency and has largely helped investors and big developers.

Photo courtesy of Victoria Pickering, via Flickr Creative Commons.

Source: CNBC (link opens in a new window)

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Coronavirus, Finance, Impact Assessment, Investing
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coronavirus, economic development, impact investing, income inequality, investors, public health, SME, taxes