South Carolina Senator Tim Scott and Florida Senator Marco Rubio are joining forces to promote “opportunity Zones,” and they’re also commenting that the new tax laws will benefit places like Overtown.
Senator Scott explained that “You’ve got government assistance already throughout the country and throughout neighborhoods. The fact is what you have to have in a complement to government assistance is private sector capital that sees the desire to invest in these neighborhoods.”
According to the Investing in Opportunity Act, taxes on capital gains will be deferred when invested in funds called “opportunity funds.” There will be state-targeted areas where said money can be invested, and Governor Rick Scott announced 68 “opportunity Zones” located in Monroe and Miami-Dade county along with one in Overtown.
Senator Rubio also commented on the matter by explaining that “What we’ve been able to do with tax reform is employ for distressed communities strategies that other countries have been able to use to take jobs away. Today, you’re better off investing here in Overtown — theoretically, if we can get this done — than you would be taking your jobs to another country, thereby creating opportunities for dignified work for thousands of people that live within walking distance.”
Ultimately, Senator Scott adds that private money should become widely accessible to finance growth and that the private sector should be left to economically invest.
He notes, “The key is to bring in private sector capital, and government programs don’t do that. By deferring the capital gains tax up to 10 years you allow for long-term investment in struggling communities. When that happens you’ll find that hope is breathed into those communities and opportunity flourishes.”