nearvideo California new progressive Gov. Gavin Newsom is committed to the challenge of the White house on health care and immigration
President Trump and California Gov. Gavin Newsom in the opposition have been, long before its arrival in Sacramento early this year, cope with each other has, in speeches and on social media about issues such as immigration, high-speed rail projects.
So it probably came as a shock to many, if Newsom offered on Monday, rare praise from a trump administration policy, which provides tax incentives to investments in low-income areas will be expanded.
During a speech at Stanford University, Newsom, the possibility of zones of said program does not only contribute to California’s enormous economy, but would also help provide the resources to help deal with the state housing crisis and the promotion of energy investment, the state of its climate policy objectives.
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The opportunity zone program is part of the 2017 tax cuts, and Jobs Act and looks down to bring the capital income communities expensive for the investors in real estate and businesses in low-income neighborhoods. The program would allow investors to pay no capital gains tax – which can run as high as 20 percent – after holding an investment for 10 years.
Newsom confirmed in his speech that it was an unusual step for a Democrat, let alone a support with a public history of sparring with the President – a program heralded by the current White House administration.
“We all heard about this opportunity zones. We were a bit perplexed,” Newsom said, according to the San Francisco Chronicle. “Many of us, at least on my side of the political aisle said, ” That actually sounds like a good idea. Wait a second, it was the administration came in? I’m still trying to get my arms around him. Maybe it is also a good idea.'”
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California is currently in the middle of a major real estate crisis – spurred on by the limits on the amount that cities and counties spend on (new apartment, and the tech industry boom, which has attracted many new residents and increase pressure on property prices around the state. Currently, many parts of the San Francisco Bay Area – including parts of the city, in Oakland, Berkeley and San Jose – designated low-income areas to move even as people flock.
Newsom argued in his speech that the tax benefits and the program will only succeed if the investments, the people, the communities currently living in the designated low-income neighbor benefit.
“We want to not only believe in growth. We believe in the inclusion. You can’t the said one without the other” Newsom. “I Appreciate Your Interest. I hope it is not only to make a quick buck.”