National University System Institute for Policy Research

(858) 642-8498 Get Started

Enterprise zones: What next?

EconoMeter panel reacts to new legislation curtailing the tax breaks

Roger Showley, U-T SAN DIEGO

Friday, July 5, 2013

View Article

Kelly Cunningham, National University System
Answer: YES

The new program is better, but not likely to be much more effective. The state's previous enterprise zone system was largely ineffective at increasing jobs overall. Whatever growth was attained, costing billions of dollars per year, usually just redirected jobs from other areas. Gov. Brown’s new program, with $750 million in tax breaks each year, is a better, more broad-based approach. Taxes are temporarily reduced for certain businesses located anywhere in California. In the end, attempts at micro-managing the economy with entitlement programs are not likely to create many more jobs than simply lowering taxes and regulations for all businesses.