This archive report was first published on 26 October 2019.
Published on October 26, 2019, a Treasury Department insider revealed that the opportunity zone initiative, signed into law by President Trump in 2017, has been marred by controversy. The initiative allows investors to delay or avoid taxes on capital gains by investing in designated opportunity zones.
Former Treasury official Annie Donovan expressed her concerns, stating that employees were put in a position where they had to compromise the integrity of the process. The initiative has been criticized for favoring wealthy investors and real estate developers, with much of the money flowing to affluent neighborhoods.
Michael Milken, a symbol of 1980s greed, stands to benefit from the initiative. His institute has been pushing for rules that would make it easier to qualify for the tax break, which would benefit his investments. Milken's spokesman, Geoffrey Moore, confirmed that Milken has investments inside opportunity zones but disputed any claims of using his institute or Washington connections to benefit his investments.
Geoffrey Baum, a spokesman for the Milken Institute, denied any connection between the institute's work and Milken's investments, stating that the institute advocated for changes to spread the benefits to more low-income communities.
