Tax break should be killed, not reformed
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Re “State Tax Break Benefits Companies, Not Workers” and “Enterprise Zones Are a Boon to Consultants,” Jan. 31
These stories tell how loopholes, lax oversight and cheating forced taxpayers to give companies in makebelieve “enterprise zones” more than $300 million last year, and greater amounts are expected in 2006 as consultants acquire more clients.
The basic factor is the absolute criminality of any program that relies on tax credits (the earned income tax credit may be an exception). The California Tax Code is rife with dozens of credits that are alleged to create jobs or clean the air.
Suppose the job program had created an optimistic 1,000 jobs last year -- simple division arrives at a cost of $300,000 per job. It would have been less expensive to directly donate $34,000 to 1,000 unemployed people.
Our self-proclaimed corporate benefactors have taken us for a ride. The Times’ reporting tells us that California’s enterprise zone/jobs creation program should be canceled, not reformed.
DAVID CAMPBELL
Los Angeles
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