Tuesday, February 8, 2011

Tax Credits For The Poor End Up Going To Luxury Hotels, Big Banks

Taxpayer dollars that were intended to help poor communities are instead being used to finance luxury hotels, according to a new story inBloomberg Markets magazine.
A Federal program, called New Market Tax Credits, gives a substantial tax refund to institutions that bankroll development projects in poor neighborhoods, according to Bloomberg. But in practice, it hasn't always worked out that way. Developers use 10-year-old Census data to claim a neighborhood is low-income and deserving of a jobs-creating development. Many of the neighborhoods receiving taxpayer assistance have since become upscale. Some of the projects being financed are among the most luxurious of their kind. [ Continue Reading ]

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