Billionaires Get 'Low-Income' Tax Breaks in Condo Tower

[Newsjock]

Source: CNBC

The billionaires paying more than $90 million for top apartments at the new One57 tower in New York have some very special amenities. They get more than 10,000 square feet, 75 floors above Manhattan. They get VIP concierge and doorman services, along with some of the best views in the city.

But they may also get a less publicized benefit: tax breaks of more than $150,000 a year from a program aimed at low-income housing.

According to financial documents obtained by CNBC, One57 may receive a tax abatement under a long-existing city program designed to provide more low-income housing. The program, known as 421-a, gives developers tax breaks for 10 to 20 years, which are then passed on to buyers. At One57, those savings may be substantial.

... "This is an outrageous giveaway," said Brad Lander, a New York City councilman who has worked to end tax breaks for luxury condos. "We can't afford to be giving away millions of dollars in tax breaks for nothing."


Read more: http://finance.yahoo.com/news/billionaires-low-income-tax-breaks-194500791.html

[azurnoir]

1. adding insult to injury

from the article

Gary Barnett, founder of Extell Development, which built One57, said that his building has followed all the guidelines for the program, and that through the 421-a program, One57 has helped build "countless" affordable housing units in the Bronx, Brooklyn and elsewhere. The benefits, he added, would mainly flow to Extell rather than the buyers. While the buyers would reap the tax savings, those lower taxes have allowed him to charge more for the units, he said.

[hootinholler]

5. Countless?

Would that be because no one counted them or they don't exist? I submit they are countable.

[xchrom]

2. Quelle surprise.

This is what municipalities and states do w/ the wealthy & corporations all the time.

Then everybody else picks up the slack.

[ChaoticTrilby]

3. This.

This is why we need to get our asses in gear and tax the hell out of the millionaires and richer. They're finding loopholes everywhere. I say it's about time we close a few of them and put the squeeze on the super-wealthy.

And, if they manage to exploit more loopholes, we close those too. Eventually, they won't be able to run away anymore.

[madokie]

6. Welcome to DU ChaoticTrilby

We need as many people like you as we can get.
Peace

[ChaoticTrilby]

7. Thanks for the welcome!

It's great to be here.

[Curmudgeoness]

4. You are fucking shitting me!

There is something so wrong with this country and it's perverted turns on meaningful programs.

Next up, the argument that low-income housing programs are too expensive and must be stopped.

[Lucky Luciano]

8. Usually this only benefits the landlord/developer.

A lot of people paying full price in these buildings often resent the lower income folks waltzing into their building and paying a miniscule fraction of what they pay to live there.