A federal tax credit intended to
help revitalize struggling, impoverished communities is, in some
instances, being used by big banks to open new luxury businesses and
exhibits that don’t benefit the low-income people it was meant to help.
The New
Markets Tax Credit was created nearly 15 years ago to offer banks an
incentive to invest in small businesses in low-income areas with the
hope that more jobs could be created in those communities. But little
oversight over the credit, which equals 39 percent of the investment,
has auditors and lawmakers questioning whether it’s a good use of
taxpayer dollars.
Two new reports
released today from the Government Accountability Office and Sen. Tom
Coburn’s (R-OK) office raise issues with the program, which costs at
least $1 billion every year.
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