John Shaffery Chairman, SCV Chamber of Commerce wrote this spirited op-ed piece in today’s Santa Clarita Vally Signal:

Your article about enterprise zones (“In the zone: A local look at the effectiveness of enterprise zones,” August 8, 2010) made a number of good points, but I think it is important to understand more about the importance of this economic tool for businesses – especially those in the Santa Clarita Valley.

To try and assess if enterprise zones are good or bad is the same as saying we’re not sure if a patient will react to an antidote – if you don’t give them the antidote then you can be assured of one thing: the patient will get sick and die.  California businesses have been sick and on life support for a number of years now. Businesses that want to be in California are trying to find every reason to stay here, and the enterprise zone tax credit program is a tool they can use to make their businesses more economically viable.

Let’s look for a moment at the California Legislative Analyst’s office estimate that enterprise zones cost the state $400 million. The CLA does not discuss the other side of this economic equation to determine the number of potential lost jobs if some companies didn’t have this tax credit available.

What if 50 California companies moved to another state that offered similar or more aggressive tax incentives? If each of those companies employed 10 people, that would mean 500 jobs lost in this state. Over a one-year period that may not seem like a lot. However, if you multiply that number by 10 years, you end up with 5,000 jobs going elsewhere.

The point to remember is that these types of tax incentives not only increase hiring, but they also are an incentive to keep companies from leaving. California has one of the most highly taxed, legislated and regulated business climates in the nation, and we can’t continue to think companies will just stay here because of our good weather and nice beaches.

Enterprise-zone tax credits are a vital part of the SCV’s economic engine as well as in 41 other areas across California. Every business owner and taxpayer should demand Sacramento leave the enterprise-zone tax credits alone.