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Will this trickledown work? by Foon Rhee
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Interstate 5 and Robla. Along with the Let’s count the ways that the TrumpMeasure U sales tax, opportunity zone Republican tax cut was terrible. money could boost inclusive economic It was a giveaway to the wealthy, development. It could also help launch who were doing just fine, and to corporaan effort to remake the waterfront. tions, which were already raking in huge Both are top city priorities this year, profits. In fact, big companies didn’t add jobs or buy more equipment, as President Mayor Darrell Steinberg said at a very upbeat State of Downtown event on Donald Trump and his amen chorus January 22. Downtown Sacramento claimed would happen. Instead, they Partnership leaders celebrated new spent billions upon billions to buy back housing and retail and growing national their own stock, putting more money in buzz, but said it’s crucial to build on the hands of rich shareholders. the momentum, especially to make the The tax cut is also bad for California. waterfront a “one-of-a-kind” destination. It caps the deduction for state and local These opportunity zones have taxes at $10,000, more than what has “potential,” but it’s too early to say been claimed by more than 1 million how they will play out, said California taxpayers. That Michael Jasso, assistant means a deeper tax bite city manager in charge when they fill out of innovation, their 2018 returns in Opportunity zone economic developcoming weeks. money could boost ment and commuBut the tax inclusive economic nity development. cut law included Across one idea that won development. It could California, about bipartisan support also help launch an 880 census tracts and could be effort to remake the qualify as opporgood for struggling tunity zones; across areas in Sacramento waterfront. the nation, it’s about and other U.S. 8,700. Bloomberg cities—maybe. reported this month that It creates “opportunity there’s already a gold rush by zones” that offer tax breaks on some developers to capitalize. While capital gains (profits on stocks and Treasury Secretary Steven Mnuchin other investments) if the taxpayer puts predicts that opportunity zones will the money into a fund that invests in pump $100 billion into these needy “distressed communities.” areas, critics warn the cost to the On Friday February 1 at Depot Park, U.S. treasury will be far more than the city of Sacramento, City Councilman the projected $1.6 billion. They also Eric Guerra, the Greater Sacramento say that some of the eligible areas are Economic Council, the Federal Reserve already thriving. Bank of San Francisco and several other So it’s not a done deal that this latest groups are hosting a forum on opportrickle-down idea will work as advertunity zones—what projects might be tised. And I’m not a fan of giving more eligible and how to get them done. special breaks to the wealthy anyway. Sacramento’s opportunity zones But in Trump’s America, is putting include the downtown railyards, the more cash in the pockets of the rich the riverfront, Meadowview, Valley Hi, price we have to pay to create more Avondale/Glen Elder, Franklin, the River jobs for working families? If so, that’s a District, North Sacramento, Del Paso shame. Ω Heights, parts of South Natomas along