CityLab, May 16, 2018: The problem with opportunity zones
The latest federal effort to revitalize impoverished parts of the country using tax incentives is beginning to take shape. Unfortunately, if history is a guide, it won’t work.
New York, New Hampshire and Florida are among the latest states to nominate low-income neighborhoods for the new Opportunity Zone program, created as part of the tax law passed late last year. They hope to join the 18 states already in the program, which offers investors a big tax break in exchange for plowing money into areas designated as opportunity zones.
The program’s backers claim this will reduce poverty, increase employment and spur growth. However, research conducted by myself and others shows that this approach tends to fail.
