danielpalos
Diamond Member
- Banned
- #421
Lousy management? Let's ask a professional real estate person, how to solve that dilemma.Then again people like Trump will take something for nothing, how much has he taken for free? Something close to $1 billion.
Really? Prove that.
Prove it? Okay.
http://www.nytimes.com/2016/09/18/nyregion/donald-trump-tax-breaks-real-estate.html?_r=0
"
A Trump Empire Built on Inside Connections and $885 Million in Tax Breaks"
Donald Trump: Developer has thrived with government's generosity
"From his first high-profile project in New York City in the 1970s to his recent campaigns to reduce taxes on property he owns around the country, Trump has displayed a consistent pattern. He courted public officials, sought their backing for government tax breaks under extraordinarily beneficial terms and fought any resistance to deals he negotiated."
"Karen Burstein, a former auditor general of New York City, reviewed a major Trump project in the 1980s and concluded he had "cheated" the city out of nearly $2.9 million. Decades later, Burstein said she was still appalled at the way Trump operated."
"Referring to how he managed to win a 40-year tax abatement for rebuilding a crumbling hotel at Grand Central Station — a deal that in the first decade cost taxpayers $60 million"
"Trump also sought access to a federal program that would have guaranteed a $356-million low-interest loan in exchange for designating a percentage of the units for lower-income families."
"He eventually settled for a $34-million reduction, which local officials said cost millions in improperly reduced tax revenue."
"In Las Vegas, Trump's goal was to lower the taxable value of the recently constructed Trump International Hotel and Tower. His team, which included the former chairman of the county Board of Equalization — the agency that decides tax matters — won a reduction last year in the taxable value from $180 million to $8.6 million."
Donald Trump Has Mastered the Art of the Tax Break
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The exemption, valued at $163.775 million in total on commercial property taxes, began in 2004 and ends in 2016."
First answer this question....
Do you believe that the entire population of the country, and weighted heavily towards the lower 50% of the country, is getting something for nothing? Is costing the tax payers hundreds of billions? And is that wrong?
Because everyone is getting tax deductions, just like Trump. Moreover, unlike Trump, the lower half of the country pays almost no income tax at all. Zero.
So is that wrong? Because that's what your article points to.
See unlike Trump, the lower class of this country, the lower 40%, actually gets money from the government. Not a tax 'break'... but an actual tax paid for check.
Trump only gets a tax break. Which means he still pays tax.... just not as much.
So if you want to make the claim that getting a tax break is bad, and "getting something for nothing", and that tax breaks 'cost the tax payer'...
Then by your own standard, the absolute worst people in the country are the the entire lower 50% of wage earners.
By YOUR STANDARD... that is what you are saying.
But of course your entire premise is wrong to begin with.
Trump didn't get something for nothing. He lost money in taxes, not gained... he just didn't lose as much.
And moreover, his tax breaks didn't "cost" the tax payers anything. If he had not been giving the tax break, the hotels would not have been built at all. If they had not been built at all, he would have paid zero tax, which is less than tax minus a break.
Moreover, the hotel itself generate income tax from the people working there... .sales taxes from the people staying there, and tourism or business taxes from the activities of the people who come to New York city because there is now a hotel for them to stay at.
By any conceivable measure, Trumps activities gained far more revenue in taxes, than was possibly "lost" by a tax break.
Similarly, if Trump had not gotten a tax break for low income housing, he most likely would not have built the low income housing, and low income people would not have had houses to live in, and no one would have been employed to build or maintain the low income housing, and no one would have lived there generating income taxes from a New York residence. Especially when New York has a chronic shortage of low income housing.
So your entire premise is completely false, even before I pointed out that by your logic, the lower 50% of people in the country are worse, and "cost" the tax payer more than Trump ever has.
A lot of people get tax money off, which seems a little ridiculous. It seems to be designed to make money for lawyers.
So the hotels wouldn't have been built. If there were the demand for those hotels, they'd have been built, right? But no, he builds a hotel that wasn't necessary. Isn't it the right that wants govt to stay out of business? I mean, I'm probably closer to most conservatives than liberals on such issues.
No. Demand is only one component. Demand, doesn't magically create supply. Never has.
Take China for the 50 years before the capitalist reforms. Was there no demand for food? No demand for housing? No demand for stuff, or jobs, or cars, or everything else?
Of course there was. Why didn't it happen? Because no one could profit from it.
When you make something unprofitable to do, it doesn't matter how much demand you have.
Take the oil production in Venezuela. Once the Venezuela government nationalized the oil companies, there was no longer any profit into investing in oil wells. Thus oil production has been falling all these years while oil production in the US has been vastly increasing. And Venezuela has more oil reserves, than any other country on the planet.
So, no, the answer to your question is no. All business is only built if it is profitable to do it. Doesn't matter how much demand there is for the service, if the cost of doing business, which taxes in New York are a large part of, is too high to be profitable, then the will not be built.
If you need more proof, just look at the housing shortage in New York.
Severe Shortage of NYC Affordable Housing Creates 1,000 to 1 Odds For Applicants
2.5 Million people applied to get these micro homes.
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What you are looking at, is the entire home.. That's it. That couch folds out to a bed. Everything you need in one "micro-house".
Why do they have such shortages, and at the same time.......
View attachment 104425
Abandoned apartment buildings.
Why is this? How is it that they have a massive housing shortage, where people are buying "micro-homes", and yet have completely abandoned apartment buildings, left vacant in the middle of New York city?
Real simple. They have rent control. The rent control makes providing the apartments unprofitable. Because it's unprofitable, all the demand of literally MILLIONS of people, is irrelevant. The owners ditch the property, and it is left empty, in a city of millions of people completely desperate for homes.
So you say, well if that's true, then who built those micro-homes? Read the article.... the builders are getting subsidized by the government. If they hadn't been subsidized... they wouldn't have built those homes.
Same with Trump and the Hotel. No tax breaks, making it profitable to build the hotel? The hotel would not have been built.