Say Anything Blog

This from the Arizona Republic about Katrina Aid being misused.

TUSCALOOSA, Ala. - With large swaths of the Gulf Coast still in ruins from Hurricane Katrina, rich federal tax breaks designed to spur rebuilding are flowing hundreds of miles inland to investors who are buying up luxury condos near the University of Alabama’s football stadium.

About 10 condominium projects are going up in and around Tuscaloosa, and builders are asking up to $1 million for units with granite countertops, king-size bathtubs and Bama decor, including crimson couches and Bear Bryant wall art.

While many of the buyers are Crimson Tide alumni or ardent football fans not entitled to any special Katrina-related tax breaks, many others are real estate investors who are purchasing the condos with plans to rent them out.

And they intend to take full advantage of the generous tax benefits available to investors under the Gulf Opportunity Zone Act of 2005, or GO Zone, according to Associated Press interviews with buyers and real estate officials.

The GO Zone contains a variety of tax breaks designed to stimulate construction in Mississippi, Louisiana and Alabama. It offers tax-free bonds to developers to finance big commercial projects like shopping centers or hotels. It also allows real estate investors who buy condos or other properties in the GO Zone to take accelerated depreciation on their purchases when they file their taxes.

The GO Zone was drawn to include the Tuscaloosa area even though it is about 200 miles from the coast and got only heavy rain and scattered wind damage from Katrina.

The problem with Katrina has not been that Government wasn’t responsive enough when Katrina happened.  It really was the way that government responded afterwards that I take issue with.  New Orleans is still a disaster despite billions in aid being divied up by local (and by Louisianna standards anything short of Rep. $100k Jefferson is clean) politicians.

Government jumped to throw money at the Gulf and these are our tax dollars being spent on condos for Alabama Football.  There was no oversite and the entire process of “rebuilding” has led to massive fraud and waste.

Dependence on government is why Katrina killed so many.  Government tax subsidies, breaks, and grants are being funneled into pet projects and are just flat out stealing from the rest of us.  And it is all over our white guilt at seeing what happened to the poor Chocolate City.