Hidden Forces How Washington Works in the New Gilded Age | David Wessel
Oct 4, 2021
David Wessel, a Senior Fellow at the Brookings Institution, unveils the controversial truth behind Opportunity Zones—tax breaks marketed as social justice but seemingly benefiting the wealthy instead. He dives into the political machinations that allowed such provisions to slip through with little scrutiny, revealing the underlying dynamics of power in Washington. Wessel also discusses current issues like infrastructure bills and the landscape of upcoming elections, shedding light on the intricate relationship between wealth, policy, and democracy.
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Opportunity Zones Origin
- Sean Parker, known for Napster and Facebook, championed the Opportunity Zones tax break.
- This incentivizes investment in low-income areas by deferring capital gains taxes.
How Opportunity Zones Work
- Opportunity Zones offer significant tax benefits for investors with unrealized capital gains.
- These gains can be invested in designated low-income communities to reduce taxes.
Political Strategy of Opportunity Zones
- Bipartisan support, especially from two African-American senators, helped pass the Opportunity Zones provision.
- It made the bill appear less like a sop for the rich.
