Posted by The Crux |
Last week, we learned about slow progress in rebuilding New Orleans and protecting the city from future storms (Time and BN-Politics). Today, I found an article (Aug. 13) about abuse of tax incentives by investors seeking to give college football fans luxurious places to crash during 'Bama games:
"With large swaths of the Gulf Coast still in ruins from Hurricane Katrina, rich federal tax breaks designed to spur rebuilding are flowing hundreds of miles inland to investors who are buying up luxury condos near the University of Alabama's football stadium."About 10 condominium projects are going up in and around Tuscaloosa, and builders are asking up to $1 million for units with granite counter tops, king-size bathtubs and 'Bama decor....
"While many of the buyers are Crimson Tide alumni or ardent football fans not entitled to any special Katrina-related tax breaks, many others are real estate investors who are purchasing the condos with plans to rent them out.
"And they intend to take full advantage of the generous tax benefits available to investors under the Gulf Opportunity Zone Act of 2005, or GO Zone..." (USA Today).
Tax-break meant to help our nation often don't do so. Over the last six years, for example, politicians created huge corporate tax breaks, claiming they would help companies create American jobs. Because the laws didn't require companies to create American jobs, many companies pocketed the tax breaks while sending jobs overseas.
The charitable view is that it boils down to legislators' bad writing skills.
Given how horribly mismanaged the entire Katrina disaster was from top to bottom, it's not the least bit surprising things like this are happening. People have been taking advantage of the government's lack of oversight in the aftermath of Katrina since the rebuilding started, and why should things change now?
Posted by: BlueBlogger | August 20, 2007 at 11:54 AM