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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street, seeking big tax breaks, sets sights on distressed main streets
Distressed America is Wall Streets hottest new investment vehicle.
Hedge funds, investment banks and money managers are trying to raise tens of billions of dollars this year for so-called opportunity funds, a creation of President Trumps 2017 tax package meant to steer money to poor areas by offering potentially large tax breaks.
Little noticed at first, the provision has unleashed a flurry of investment activity by wealthy families, some of Wall Streets biggest investors and other investors who want to put money into projects ostensibly meant to help struggling Americans. The ranks of those starting such funds include Anthony Scaramucci, the New York hedge fund executive who served briefly as Mr. Trumps communications director.
More than 80 of the funds have sprung up since January 2018, even though the Trump administration has not finalized regulations governing them. Managers of the funds are seeking to raise huge sums of money by pitching investors on a combination of outsize returns and a feel-good role in fighting poverty.
https://www.msn.com/en-us/money/markets/wall-street-seeking-big-tax-breaks-sets-sights-on-distressed-main-streets/ar-BBTQZ4v
I don't know. Kind of sounds like slumlords to me frankly.
PeeJ52
(1,588 posts)moondust
(19,993 posts)If those were seriously viable investments wouldn't they have been gobbled up with the last round of tax cuts? Or the one before that? Or the one before that? Or the one before that? ...
Sounds like a fake excuse for more tax cuts.
Wellstone ruled
(34,661 posts)wall street wnts to buy some towns main street in the middle of flyover land as a tax dodge. Those days of trying to fix those dying Main Streets ended way back in the late 60's. When Nixon came into office,he put a stop to redeveloping these small towns by killing of all of LBJ's great society programs and that was the death knell of Rural America.
bigbrother05
(5,995 posts)They'll snatch up distressed real estate, overbuild with tax free investments, then dump it on the retirement & mutual fund markets so Granny Johnson loses her life savings to send Broker Jared to the Bahamas.
Just another opportunity to pump & dump while leaving Main Street decimated.
dixiegrrrrl
(60,010 posts)other vultures will take advantage of the law until it is changed.