Known for having a personal vendetta against President Trump, Governor Gavin Newsom is actually supporting a tax cut created by the tax reform bill the president signed in 2017. Governor Newsom has introduced a $100 million a year tax cut for California investors so long as they comply with one condition.
In 2017, President Trump’s tax bill created opportunity zones, which award investors with substantial tax cuts should they invest in projects in economically struggling places. Currently, California has 879 opportunity zones in 57 different counties. Governor Newsom recently announced his plan about the tax cuts, which also involve opportunity zones.
According to Newsom’s plan, California investors will be rewarded with a substantial tax cut so long as they put money towards low-income housing or green technology projects within the 879 opportunity zones. Essentially, Governor Newsom is using the same exact outline as President Trump, but adjusting it to be more applicable to California.
The potential tax cut has been met with both criticism and praise. The criticism comes from benefits only being awarded to wealthy investors and ignoring those in organized labor. The praise comes from the improvement of the economy and the hopes of combating the current housing crisis in California.
In the end, Governor Newsom is finally implementing a tax idea that will actually benefit California and its economy.
Photo by NeONBRAND
