Biden and Harris two years ago took $7 billion to build 500,000 EV chargers around the nation. So far, they have built seven, most of which are in Vermont. Oh, some, though built, do not work. Now Harris wants $40 billion to build “innovative housing”. Is that like getting Frank Lloyd Wright to create these homes? Oh, of course ONLY those who belong to unions—less than 10% of all Americans—will be allowed to work on these projects.
“Before 1986, an investor could put up a certain amount of cash and obtain tax deductions.
In a simplified way, here is how a common pre-1986 RELP might work. An investor would supply $10,000 in cash to join the RELP. The $10,000 –- plus funds from other investors — would be used to construct housing. The partnership would exist for a three-year period.
During the first year of the partnership, an investor would be able to deduct $24,000 from his income. Thus, an individual with $100,000 in annual income would only have to pay tax on an income of $76,000. (The figure of $76,000 does not take into consideration other possible tax factors.)
During the second year, the tax deduction would be $8,000. And during the third year, the deduction would be $1,000.
The total tax deduction over the three years would be $33,000.”
This is another way to finance, without government getting involved in mandating workers, costs or locations. Let the private sector do its job—government is run like the Post Office and Amtrak, billions in losses every year.
A POSSIBLE $40 BILLION MISTAKE
By Richard Colman, Exclusive to the California Political News and Views 9/4/24
www.capoliticalnewsandviews.com
Presidential candidate Kamala Harris “ . . . wants to create a new $40 billion innovation fund to spur innovative housing construction . . .” The quoted information comes from CNN (Aug. 15, 2024).
Harris is currently America’s vice president.
Are taxpayers’ dollars needed to create a special housing fund?
There may be another way to proceed. The other way is to allow what can be called a special Real Estate Limited Partnership (RELP).
Many such partnerships were banned with the 1986 tax reform enacted during the administration of President Ronald Reagan.
An RELP would use private funds to construct housing.
An RELP would offer a tax break to an investor, and no one is certain that the tax breaks from all investors would be greater than, equal to, or less than the $40 billion that Harris wants.
Before 1986, an investor could put up a certain amount of cash and obtain tax deductions.
In a simplified way, here is how a common pre-1986 RELP might work. An investor would supply $10,000 in cash to join the RELP. The $10,000 –- plus funds from other investors — would be used to construct housing. The partnership would exist for a three-year period.
During the first year of the partnership, an investor would be able to deduct $24,000 from his income. Thus, an individual with $100,000 in annual income would only have to pay tax on an income of $76,000. (The figure of $76,000 does not take into consideration other possible tax factors.)
During the second year, the tax deduction would be $8,000. And during the third year, the deduction would be $1,000.
The total tax deduction over the three years would be $33,000.
After the third year, the partnership would be sold. Any profits made after the three years would be taxable.
Perhaps candidate Harris ought to explore RELP’s as a way to construct more housing.
Sometimes, using the tax code can produce better and faster results than spending taxpayers’ money.
There is a much simpler way to encourage home building and that is to wipe out most of the red tape a developer has to contend with to construct housing. The environmentalist and local governments have too strong of a hold on any kind of development project. Read “Personal Opinions of One Common Man” available online from Amazon, Barnes & Noble and Walmart. The cost is less than the price of a burger, fries and coke.