Inspired by an FCC Tax Certificate Policy established in the 70’s, BET founder Bob Johnson has proposed the enactment of a $30 billion tax incentive legislation to provide pref- erential treatment on gains to those who invest in businesses owned by Black Americans and other minorities.
The proposed legislation– dubbed the BOOST Act (Better Opportunity and Outcomes for Socially Disadvantaged Talent)–addresses the longstanding problem minority businessowners face in attracting cap- ital, particularly “strategic equity” capital.
The biggest challenge to racial equality in our nation is the glaring wealth chasm between Black and white American families,” said Johnson, in announcing the plan. “To close that gap, there must be a commitment to find- ing a workable solution to the lack of capital in the Black community.”
Johnson–who presently serves as CEO of The RLJ Companies–believes that access to capital is just as important as voting rights. “The BOOST Act, if enacted by Congress through tax legislation and embraced by investors, would elevate Black and minority businesses into the wealth-building and wealth-accumulation economic system that is the principal driver of economic opportunity and achievement in our capitalistic economy”.