On blustery days, wind pushes trash up against the fences around the Parkchester subway stop in the Bronx. A “Chickenfest” restaurant, an off-track betting center, and a dry cleaners circle this express stop off the 6 train.
For outsiders, the southeast Bronx is seldom a final destination – its a place to drive through, rather than to drive to. Although crime has been down for much of the decade, the Bronx still has stretches of run-down, forgotten-about blocks.
Rep. Joe Crowley’s 7th district straddles much of the southeast Bronx and chunk of northern Queens. Besides $10 in tolls, quality of life separates the two boroughs. Queens residents are the happiest New Yorkers at 51 percent and Bronxites the least happy at 24 percent, according to the Citizens Committee for New York.
The number of defunct buildings in the Bronx might find some investors if the Real Estate Revitalization Act passes. The bill, sponsored by Crowley, will reduce the amount of taxes foreign investors pay for American real estate.
The Foreign Investment Real Estate Property Tax, passed in 1980, includes capital gains taxes as high as 55 percent – these taxes are generally applied to sales on property, stocks and bonds. For example, if a foreign investor buys and sells Google stock, they don’t pay taxes in America. But if an investor buys real estate investment trust (REIT) shares, they pay taxes in America, according to this CNNMoney.com article.
If Crowley’s bill passes, he may score some points with Republicans for advocating for a tax cut – albeit for foreigners. But Democrats may not be too fond of foreign investors competing with American buyers.
Since Americans aren’t buying up this property – and don’t have to pay any foreign taxes – why would foreigners think it’s a wise investment anyway?