Latest Enterprise Zone commercial from the City:
Notice it makes no mention that EZ beneficiaries are supposed to be creating jobs…no the chief selling point here is that local businesses can “virtually eliminate [their] business state income tax.”
You know what? That’s money out of our collective pockets, money these businesses would be paying to we the people. Money that could go to our schools, roads or the City itself, which is having its own fiscal challenges lately.
Instead, we’re giving them big tax breaks, and for what? What are we getting out of it?
Well we know Walmart is taking advantage of it. So are scores of other big box retailers, restaurants and auto dealers.
Are they creating jobs that help our local economy? Where is the cost/benefit analysis that shows this is a worthwhile program for our valley and not just a handout to the local business class? What are we really getting out of this? I want specifics, not announcements that it has created “hundreds of jobs.” What kind of jobs?
We simply don’t know. The testimonials posted on the City’s EZ website from business owners just say the program has saved them money. The only evidence we do have comes from a non-partisan Sacramento think tank, and it says EZ programs are negligible when it comes to creating jobs.
And people wonder why I’m skeptical of the $200,000 we handed over to local business interests to create the Santa Clarita Economic Development Corporation and they wonder why I laugh when we hear that the local Chamber is hiring a lobbyist who will fight EZ program changes that would require employers to provide health care for their employees.
For that matter, where’s David Gauny and TimBen Boydston demanding proper accountability for our city programs and tax dollars?
But by all means, if you’re a local business owner, they’re throwing another breakfast for you next week, so have at it, on our dime.
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The enterprise zone does not even help SMALL businesses. This helping hand is extended to only large buisnesses with a lot of employees. Only mega-sized businesses like restaurants and banks and car dealerships qualify for this enterprize zone. As usual, small business in SCV can take a hike as far as this city is concerned. SCV’s Chamber of Commerce was once small business friendly. Now, our Chamber of Commerce has no interest in small businesses at all.
Seems strange that when the state is broke taxpayers have to subsidize business. I make every effort not to shop in Santa Clarita. The relationship between business and the City has stepped over the line.
When will the city be having a free breakfast to teach local residents how to minimize their tax burden?
It is no wonder good people have thrown up their hands and said screw it to things like paying their mortgage when they are underwater. I hope our council gets a good housecleaning this election.
We know the kinds of jobs that Obama’s stimulus created. Temporary construction or public service employee jobs. And mostly, the funds were used to keep jobs that had already been created rather than new jobs. I understand your point here Jeff but some continuity between what you require of the city and what you require of the Federal Government on job creation would be greatly appreciated.
EZ did not help Jill Brown. They still let her go! Seems they then hired a new employee to that qualified them for EZ credit! How does that work TM?
Jeff,
Are you not the same guy that wrote how great the stimulus was because a local lock shop had hired 10-15 guys with stimulus money? Those guys were making 10.00 an hour and you praised those jobs as keeping people afloat! At the very least be consistent
http://scvtalk.com/page/19/
Found it on Dec 3 you praised the stimulus with this post
“KPCC radio highlights Pacific Lock, that Valencia company that has received stimulus funds and has hired 20 local workers as a result. “It put a lot of people back to work who were pretty much at the bottom and not knowing what’s gonna happen and how they’re gonna pay that next bill,” one 48 year old Santa Clarita worker told KPCC ”
http://www.scpr.org/news/2009/12/03/stimulus-jobs/
How much are these guys making? Benefits? But it is “good” because? STIMULUS? Laughable!
EZ benefits haven’t helped my biz one bit but I suppose that if a business has enough work coming in to where they need to hire additional help it would pay off for them. If there is no new business then there are no new jobs, EZ benefits or not.
who’s Jill Brown?
Perhaps the unusually quiet one can answer? Where is TM.
cash – let sleeping dogs lie
I do not think dogs is appropriate unless you are pointing in the opposite direction.
It is hard to sleep when you may are lose your home.
EZ didn’t help the Browns.
“We know the kinds of jobs that Obama’s stimulus created. Temporary construction or public service employee jobs. ”
Which are still jobs.
“. I understand your point here Jeff but some continuity between what you require of the city and what you require of the Federal Government on job creation would be greatly appreciated.”
That’s just it. The Obama admin can be judged by the data it’s putting out at Recovery.gov, at BLS and in other places.
With the City, we have no data whatsoever, only business owners telling us how good EZ is to them.
“Are you not the same guy that wrote how great the stimulus was because a local lock shop had hired 10-15 guys with stimulus money? Those guys were making 10.00 an hour and you praised those jobs as keeping people afloat! At the very least be consistent”
Some jobs are better than no jobs. Do we know any jobs have been created due to EZ?
Besides the two programs are not the same. Stimulus is short term economic recovery money. EZ is long-term tax break for business owners. We should expect return for the break we’re giving them, or do you like corporate welfare John Adams?
Navigator:
Can’t you get EZ benefits by buying certain equipment?
Jeff – There are benefits available for buying some equipment. You first need to be able to afford the expenditure for the new equipment. EZ plays more to people than equipment since equipment is an asset and people are an expense.
“I do not think dogs is appropriate unless you are pointing in the opposite direction”
Ok, then, how about, “don’t wake TM up”
Let’s say I own a company that has its headquarters within the SCV EZ. I hire a new employee for within the area designated by the ez procedure. Then I ask that person to relocate his family to my, let’s say my Norco office, do I continue to receive the EZ benefit for hiring the individual.
I will pay this person like all my employees out of my EZ qualified HQ. This even though the new employee is spending his money in Norco?
Beyond my knowledge cash.
Let’s ask TM.
TM, you there!!!
I just found out that one of the biggest transporter of sand and and gravel in California, West Coast Sand And Gravel, layed off a alot of people today.
This family owned business that has been around for over forty years, is for the first time the closest it’s ever been to shutting down. Why ?
There’s no work there and California is not business friendly. I… really feel sorry for those who lost their job today.
Who is Jill Brown?
Mrs. Brown!
Obama was in vegas today. Every casino he walked into started playing
“A little less conversation, a little more action please”
Did not know that ND
I’m not necessarily attacking it, I’d just like to see more data. It’s been running for 2.5 years now.
One of the reasons we have jobs in this city is because it is business friendly. Just because EZ only works for larger businesses does not make it bad. Anytime we keep businesses in Santa Clarita we save jobs…period.
nd
cash:
The example with the employee relocating to Norco won’t qualify.
The employee has to work in an EZ location in order to qualify for the credit (both the business and the individual credit).
Who audits this for the taxpayers?
FTB – Yes, they are the ones who would handle any audits.
Flagging of returns – No government agency will ever (never say ever?) publish how a return gets flagged beyond vague references to profiles etc. Having said that, they’re like any other business and generally focus on the money, that is, returns with greater potential for audit revisions (to their benefit) are in a higher risk category for audit.
Lying For Credits – Pitched as a game show idea in the early 80′s and it didn’t fly (something about the auditors lacking the stage presence . . ). Another idea, however, is more than likely playing at a business near you: Audit Roulette . .