EXCISE TAX REFUND
The True Benefits of the California Enterprise Program
There is constant debate on both sides of the aisle concerning the fate of the California Enterprise Zone. In a state with double digit unemployment numbers, you would think that the state politicians wouldn’t even consider getting rid of the last true vestige of state funded job creation, however some lawmakers still see the lost revenues from the EZ program as more valuable than the jobs they have helped to create. Jay Prag, from Capitol Weekly, had some interesting points on both sides of the argument:
Several recent economic studies have attempted to measure the true impact of California’s Enterprise Zone program. The results are, as they say, mixed. This has led some to call for elimination of the program in order to recapture the “lost tax revenues.” Though these studies provide a thorough hindsight view, it is important to include a forward looking perspective of the business climate that California faces before considering any changes to California’s enterprise zones.
There’s an old cliché about not seeing the forest for the trees. You can extend that perspective a bit like this: If you use a magnifying glass to carefully analyze a single oak tree in the forest for several days at a time, you won’t see it grow. Your conclusion would then be that the tree isn’t growing and by extrapolation, there is no hope for the tree or the forest. Sometimes you need to back up a bit.
Looking forward and not back, California has double-digit unemployment now and likely will for many years to come. States all around the country are competing for employers. The tax advantages of our enterprise zones are one of our very best and most effective tools for bringing employers to the state. As the biggest state in the union, we need the most jobs. Anything that worsens the business climate and job picture in California – and that includes even talking about eliminating the enterprise zones – is, to be blunt, insane.