The richest men in the world benefit from tax breaks for developing their projects in economically difficult areas of Texas, Alabama, California and New Mexico.
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Jeff Bezos and Elon MuskThose who rank first and second among the richest men in the world have an added economic incentive. His space projects enjoy a United States Federal Government Tax Exemption. The benefits are part of a program that aims to attract investment and jobs to communities in need.
For almost a decade, the two mogul slopes have invested millions in developing engines and rockets with their private space companies: Bezos’ Blue Origin and Musk’s SpaceX. The companies pledged to create jobs in specific areas in exchange for local tax breaks.
The benefit that had not previously been disclosed This allows them to avoid capital gains taxes on the money they put into these opportunity zones. These investments can grow tax-free as long as they keep their investments in place for a decade.
Even the millionaire Sir Richard Branson, Number 379 on Bloomberg’s list of global prosperity, will take advantage of this tax exemption. The Briton joined the space race Virgo galactic, a public company owned by California and New Mexico, Websites included in the program.
Reviews and results
The government program has been criticized several times. Some believe it should have been invested in existing businesses rather than luring new investments into impoverished areas.
“It would be a major abuse of scarce resources to subsidize billionaires for space if there are people here on earth struggling with real problems.”said Brett Theodos, a community development expert who has studied the program for the Urban Institute in statements from The financial.
Another point of controversy is that Companies do not need to disclose whether or not they are applying for the tax exemption Document the creation of workplaces. The lack of transparency regarding the choice of areas is also alleged, as it is speculated that it responded to political reasons rather than economic necessity.
The launch site of Musk SpaceX in the village of Boca Chica, a settlement on the southern tip of Texas, has created 500 jobs in the region since 2014According to a local space official. Tesla’s CEO said this week that he had moved to Texas to be closer to SpaceX operations.
In case of Blue Origin by Bezosit was founded in Cummings Research Park in Huntsville, Alabama. Known as Rocket City, the research park includes emerging tech companies and university laboratories and is located near NASA’s Marshall Space Center. Alabama officials made it more attractive Awarded $ 16 million in incentives to Blue Origin. The company said that at peak production, the rocket system it could employ 400 people.
Virgin Galactic by Branson builds his calling SpaceShipTwo in the air and space port of Mojave, California. It is a civil test facility that houses several aerospace companies and is part of a designated opportunity zone.
Virgo galactic announced this year that would operate space tourism flights from Spaceport America, a luxurious launch pad and terminal in New Mexico. It is expected that this operation will be created 200 jobsState business development officials said. In documents filed with the Securities and Exchange Commission, he states that he has not yet paid federal taxes because he has not received any passengers or payments and has not made a profit.
Branson plans to be Spaceport America’s first passenger early next year. Hundreds of people have already reserved their seats on the suborbital flight with a deposit of 250 thousand dollars. Virgin Galactic said that expects to be profitable in 2021 The annual income is estimated to be over a billion dollars in a few years.
The elected president for his part Biden has vowed to go ahead and ask investors to show that the projects benefit the community.
With information from The financial.