Benefits of Trump’s Opportunity Zones
Before the 2018 midterm elections came rolling around, President Donald Trump announced specifics about tax breaks that were aimed at enhancing investment into low income and troubled neighborhoods. These zones in which the tax break is aimed at having now been referred to as Trump’s “opportunity zones,” and are a component of a massive tax overhaul that the Republicans announced in 2017. David Simonini — Director for Creative Consulting at the Simonini Group, claims that investors and real estate developers are some of the largest benefactors in this situation, but the merits of these opportunity zones are still being argued for political and economic reasons. However, this article will showcase three reasons why these opportunity zones will prove to be beneficial to low-income communities as well as real estate and economic figures like Simonini, who is currently involved in a Trump Opportunity Zone project himself in Lancaster, South Carolina.
Real estate and infrastructure have a significant impact on the success of a community. If these facets are outdated or damaged, it can greatly hinder the overall prosperity of a specific region. With a massive tax cut provided to developers, there is an incentive to improve these conditions and boost the economy and living conditions of various impoverished communities. Without current infrastructure and living being up to date, employment is affected, and without future plans to develop, there are no new job opportunities in construction and other sectors. Simonini claims that opportunity zones are ultimately a positive investment tool due to its ability to provide huge tax breaks for low-income new communities.
Private Sector Growth
While this is related to development, Trump’s opportunity zones will prove to be excellent beds for business, which is the core of new economic growth. Private sector entities are being given more leeway to expand their operations into these targeted areas to not only benefit their bottom line, but the health of whatever new communities they choose to embed themselves in. In fact, there are reports indicating that hundreds of billions of dollars in capital are already being channeled into this kind of growth. This is precisely why the Trump zones have been vouched for by so many, those like David Simonini in the real estate world.
David Simonini & Long-Term Incentives
Both private sector business developers and real estate experts, like David Simonini, will have more reason to commit to these communities for the long term. This is because the tax break plans to increase the amount of tax deductions for a project depending on the length of the development. So, while some critics may argue that Trump’s opportunity zones may have a shallow viewpoint of time, the very nature of the tax breaks ensures that future-thinking investors and developers are rewarded the most, which in turn means they are more likely to proceed with these types of projects.
So, while President Donald Trump is a hot-button name in discourse, this does not mean the facts surrounding his opportunity zone incentives should be ignored. Chances like these need to be viewed objectively for how great they are.