1:06:41 I never really looked into the Trump tax breaks too deeply because I don't think I qualify for the good stuff. Are these malintent, these opportunity zones? Or is the idea good but being misused? Or is what do you know about them? I'll let Trump explain opportunity zones to you. We want all Americans to share in our great economic renewal. That's why governors in all 50 states and the territories have designated 8,700 neighborhoods as opportunity zones. Hard to believe. 8,700. Household income in these communities is 37% less than the medium income in a state as a whole.
1:07:29 So it's 37% down and we're catching them fast. In order to revitalize these areas, we've lowered the capital gains tax for long-term investment and opportunity zones all the way down to a very big, fat, beautiful number of zero. Zero. All right. All right. Please tell me then that these opportunity zones are that the rich real estate developers are not eligible directly to do something, but the intent was to have the community themselves develop.
1:08:08 And then it would make sense that these opportunity zone leeches want to get someone from that community to be their figurehead. Is that how it fits together? That's how it fits together. Damn. That is cynical. That is cynical. And right. And the thing is, if you want to be capitalistic, if you want to make money, that's your thing. But you can't say you're for your people and turn around and use Trump's tax cuts, who you say is the boogeyman, who is a bad guy. You don't tell black people how to take advantage of these things until they're all sold up. I mean, all the property value, I mean, all the properties.
1:08:51 I mean, we're in 2019 now when they start talking about these things. bill went through in 2017. Two years later, all the good property's been bought up. Right. So it's just, it just drives me crazy. I just want to make sure. Do you know the stipulations about these opportunities? What I'm worried about now that I hear this is that these opportunity zones were always meant for rich developers, i.e., you know, Donald Trump's in other cities to go around and gentrify everything. Or do you know if there were stipulations that you couldn't just do that as a regular developer?
1:09:30 I mean, do you know any of the background of that? No, it's the wild, wild west. If you got money and you want to invest in the opportunity zones, and like, let's just go, not all opportunity zones are created equal. So, yes, got it. On the one hand, you've got places like Puerto Rico. Basically, the entire island is an opportunity zone and they are clearly in need of fresh investment. On the other hand, you've got places like the affluent DC suburbs right outside of Washington, the neighborhood where local officials are trying to lure Amazon's HQ2, that is also an opportunity zone. So, that report from Brookings found that of the 8,700 opportunity zones across the country, 11% have poverty rates that are actually below the national average.
1:10:16 College towns, like the one around Texas AM and the University of Southern California, they also qualify. So, the report questions whether this program will really direct money to distressed communities or whether it's just another tax haven for the rich. Now, the Treasury Department says that it intentionally gave states a lot of flexibility to choose which neighborhoods make the cut. And supporters argue they had to strike a balance and look for places that need the investment but also have market potential. Guys, investors are just now starting to raise money and understand how this program is going to work. 2019 will be the real test of whether the cash gets to communities that need it. Back over to you.
1:10:53 Okay, so regardless, the smart way, the smart money to shield themselves from criticism got a lot of these guys and brought them in and said, Okay, here's your cut. And now let's, it's all you, and you're great for your community, and let's go and do it. Yep, that's how it works. And the other thing is, if you if you listen closely in that clip, only 11% of the opportunity zones are in poor neighborhoods. Oh, yeah. So, hold on. And this is where I get pissed. But that was the governor's choice, if I understood the clip properly. But this is where I get a little pissed at Trump and
1:11:36 Ben Carson. Right. Yep, Carson would be involved in that. This is HUD. This is all HUD. What they did was they took the easy way out and said, States, you pick where the opportunity zones are. We won't push back. I mean, it's like, so everybody's, you know, saying, you know what I'm saying, absolved of any blame, and nothing goes to help the majority of what this has been labeled as helping poor people. And the poor people that the poor neighborhood that actually help, the people will be displaced. So it's just going to be totally negative for poor people.
1:12:18 So, I mean, like you said, if there's nothing there, they won't call it an opportunity zone and then the money won't flow there. And this is where I get pissed at back at Jay-Z and TI and these people. Only 11%. Yeah. I'm big on percentages. It goes with the reparation thing. You can't give me 10%. You know what I'm saying? I'm not going to take the kind of cut. You can't say this is opportunity zones and only 11%. And I know why they use 11%. So you can say over 10%. You know, it's talking points. I don't know how this game works.
1:12:56 That's a weird number to use 11%, but this money is not going to flow where it needs to help at all. So it was always a failed program to start with. It was a vehicle for when Trump allowed his rich to bring their money back on shore. Right, right, right. They needed a tax shelter. And they said, hmm, what tax shelter can we create? Great idea. Opportunity zones. Opportunity zones. The left, not the left, but the guys that's supposed to be anti-Trump love it because it's a great word, opportunity. They're throwing this word opportunity around like, you know, like change in 2008.
1:13:40 It's like, oh, yeah, opportunity, opportunity for everybody. Yeah. No. This only benefits people with capital gains. And I had a conversation with one of my friends. He's in the real. real estate. He's an entrepreneur. And he doesn't make enough capital gain to take advantage of this. And if he wanted to take advantage, I wouldn't have a problem with him because he's not out here preaching in the streets about being, you know, being a social justice warrior and a change agent. You know, he's trying to make, you know, make good on, you know, on his investments. I don't have any problem with that. It's the hypocrisy I have a problem with. And somehow I got a feeling that hedge fund that Charlamagne was talking about may be involved in some of these opportunity zones.
1:14:20 Am I feeling that right, Mo? And you don't even have to invest. Here's the other thing. And you'll see this in my video. You don't even have to invest your money into the zone itself. They create what's called an opportunity fund. So it's a fund is created and you invest your money into that fund. Yeah. And then the thing, here's a kicker. Only 30%. And listen to these percentages. I know I'm a little animated today, but it just, I mean, this really gets into my skin. So 11% of all opportunity zones are in poor neighborhoods. And then 30% of your business only has to take place in an opportunity zone.
1:15:03 I'm laughing, but it's so cruel. Right. Who are we helping here? And you know what? I don't even know if it's a good thing or a bad thing if only 11% because Jesus Christ, if it was 50 or 60%, you would have homeless people everywhere. Yeah. Wow. Okay. All right. So let's look at the concerns of opportunity zones. Well, the government is sweetening the deal for investors who put their money into San Diego's most underserved neighborhoods. It's a potential solution to our housing crisis that we're exploring as part of our Making It in San Diego initiative. Our tender supporter John Horn explains why longtime residents are concerned that plan could backfire.