FOR IMMEDIATE RELEASE CONTACT: Brooke Armour

February 7, 2011 (916) 551-1383

In Case You Missed It: Assemblyman Allan Mansoor Explains Enterprise Zone Tax Increase in Orange County Register

The Orange County Assemblyman calls the plan illegal and a tax increase on California businesses

(Sacramento, CA)—Assemblyman Allan Mansoor (R-Costa Mesa) has penned a Reader Rebuttal to an editorial in the Orange County Register, refuting claims that eliminating the Enterprise Tax Credit program will help solve the state budget crisis.

Orange County Register: Reader Rebuttal (Allan Mansoor): Future of Enterprise Zones

By ALLAN R. MANSOOR

Mansoor, R-Costa Mesa, represents the 68th Assembly District

Enterprise Zones provide tax credits to businesses willing to locate and hire in economically challenged areas of California. This important tool helps attract jobs to areas of the state with the highest unemployment; one of those areas is in Orange County. It is one of the only tools we have left to compete with other states to bring new businesses, and the jobs they create, to California.

The governor’s proposal to do away with these tax credits and eliminate previously accrued tax credits is the same as increasing taxes for the affected businesses. In fact, it is agreed in the Capitol that if the governor wants to move forward with this proposal, he’ll need two-thirds of the Legislature to support it – a clear admission that this effort is a tax increase.

…

The current budget proposal cancels those credits, and reneges on the promises that have been solidified in California’s tax code. This is like an airline cancelling all your frequent-flyer miles right before your vacation. It is an unprecedented move that could undermine confidence in California’s promises.

Attempting to retroactively eliminate these unused credits is nothing short of illegal. At the same time, it accounts for a majority of the assumed budget “savings” if the program is eliminated.

This political gimmick goes even further – eliminating Enterprise Zones could end up costing taxpayers even more money and adding to our state’s deficit.

…

Eliminating Enterprise Zones is an attack on job creation in this state. It makes no sense to include this in the budget proposal. Suggesting that “one job created in an Enterprise Zone is one job not created elsewhere” is false and disingenuous. Locating businesses into Enterprise Zones is a last-ditch effort to keep them in California. Without these Enterprise Zones, these businesses will join many others packing up.

Now is not the time to increase the burden on small businesses. Now is the time to work on real solutions with real reforms that net real savings.

To read the entire editorial, please click here.