In the years to come, Oregonians could be on the hook for massive giveaways to wealthy investors. These tax subsidies go by the name of Opportunity Zones, even though they do the exact opposite of their name. They actually undermine economic opportunity for the vast majority of Oregonians. Whether or not Oregonians end up subsidizing wealthy investors through these so-called Opportunity Zones, depends on whether lawmakers in Salem do the right thing and reject this tax scheme. Opportunity Zones are one of the many flawed provisions in the Trump tax scheme past the couple years ago. Because Oregon automatically connects to parts of the federal tax code, we're on track to give our own state version of this tax subsidy, even though the Oregon legislature never voted for it. So what is this tax spike for so-called Opportunity Zones? For all these guys, it's about the capital gains tax. It is a set of tax cuts for capital gains income. The profits from selling investments in such things as stocks, businesses, and real estate. So in this scheme, folks who invest in Opportunity funds, which have to then put their money in these Opportunity Zones, they pay either lower taxes and no taxes all on their capital gains, depending on how long they park their money in these investments. So tax deferral at first, then complete tax free. There are at least four good reasons why Opportunity Zones are bad for the vast majority of Oregonians. First, these tax breaks subsidize some investments that would happen anyway, dumping public money on an already profitable deal. That is especially true in Portland, Oregon's biggest destination for investment. The state designated some of Portland's already booming downtown as an Opportunity Zone. One deal that Oregonians could be subsidizing is a new Ritz Carlton Hotel in Condominium. The condos in this luxury building reportedly have the highest asking price anywhere in the city. Second, Opportunity Zones exacerbate the vast income inequality that already exists. The main beneficiaries are not just the rich, but the ultra rich. Capital gains income is highly concentrated at the top of the income ladder. The richest one-tenth of one percent of Oregonians together collect about the same amount of capital gains income as the bottom 99 percent of Oregonians. Another way of saying that is that if you lined up 1,000 Oregonians, the richest person would take nearly the same amount of capital gains income as the poorest 990 Oregonians. Third, this tax scheme undermines the public services that promote true economic opportunity. Look, someone will have to pay for these subsidies going to wealthy investors and that someone will be the public services we won't have the money to fund. Schools, job training programs and other many essential services that Oregonians depend on will be underfunded. As things stand now, wealthy Oregonians will get another tax break, not just for their investments in Oregon, but anywhere in the country. In other words, public dollars that could go into Oregon's underfunded classrooms will instead subsidize investments happening in another state. Finally, while opportunity zones are billed as a way of stimulating economic activity in depressed areas, there is no requirement that these investments benefit low-income residents. In fact, there is a serious risk that opportunity zones could accelerate gentrification. That's the process where wealthier residents move into a previously low-income neighborhood, pushing up rents, and eventually pushing out long-term residents, often people of color. The good news is that there's still time to minimize the damage to Oregonians and the services we depend on. Lawmakers need to protect the interest of all Oregonians by rejecting this giveaway to wealthy investors.