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The Hidden Threat of Tax Cuts to Equitable Economic Development

Marjorie Kelly

While the massive cuts to funding for community development programs proposed in the White House Budget have gotten a lot of attention, Trump's promises to slash corporate tax rates could have an equally devastating impact for inclusive community development. Low Income Housing Tax Credits (LIHTCs) and New Market Tax Credts (NMTCs) will be less attractive and valuable to investors if corporate tax rates have already been significantly lowered. S-Corp Employee Stock Onwership Plans (ESOPs) would also like see declines in growth, because the primary driver of transitioning to an ESOP for companies has been as a tax savings.