The 9-9-9 Plan will essentially turn the whole country into one giant Opportunity Zone. Some of the most attractive features of the original Enterprise Zones, such as a zero capital gains tax, immediate expensing of business equipment, and no payroll taxes are “factoryinstalled” in the 9-9-9 Plan for the whole countryto benefit.
In addition, districts designated as Opportunity Zones will have the following additional benefits:
• Deductions to employers for the total amount of payroll employed within in the Zone, subject to income limits. By basing it on payroll and not income, it reduces “gaming” and helps new businesses which generally don’t generate profits in early years.
• Value-added businesses that are more labor intensive get the most “bang for the buck.” This will match the existing labor pool better than, say, a high tech R & D lab or a law firm.
• Deductions will not be limited to “new” businesses or “new” jobs but are designed to benefit all within the Zone. Why not provide relief and reward to those already struggling in the Zone, many of whom have been doing so for a long time. They are most likely to lead to economic renewal.
• Anyone living in the Zone will get a deduction (not a credit) and anyone working in the Zone will get a deduction (subject to income limits).
• Means tested benefits should be restructured or reformed so they don’t counteract the incentives for work. (Scribd)
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