Californians need good jobs, yet under the currently broken California Enterprise Zone program, millions of our tax dollars are being wasted on strip clubs and mega-corporations like Walmart. It's time to end the Enterprise Zone abuse of taxpayer money!
The current Enterprise Zone tax giveaway program costs the taxpayers $750 million a year, growing at 32 percent every year! This tax break giveaway is rewarding businesses that pay low wages - fast food restaurants, big box stores, and even strip clubs such as Deja vu, are major recipients of Enterprise Zone tax credits. This tax break has been used to steal good union middle class jobs from one area of the state and have them relocate to a different area chasing after these tax credits.
As a member of the American Federation of Government Employees (AFGE) Local 1216 located at the San Francisco VA Medical Center and a taxpayer, I support Governor Brown's proposal to flip the Enterprise Zone program so it provides incentives for good jobs for those in California who need them the most in industries that build the middle class, like manufacturing. The Governor's proposal would end the waste, fraud, and abuse of our tax dollars that are currently lining the pockets of Walmat executives and strip club owners.
The Governor's Enterprise Zone reform program takes every dollar of the Enterprise Zone program and reinvests it into better middle class jobs. His proposal also repurposes the Enterprise Zone program to create a package of new revenue neutral, capped tax credit programs through: (1) a hiring credit targeted to getting poor people in poor communities good jobs; (2) a sales tax exemption for manufacturing equipment purchased anywhere in California; and (3) a California Compete Fund to lure and retain good jobs that pay decent wages.
Should taxpayers continue to subsidize the largest, most profitable corporation in the world? Walmart doesn't need our tax dollars. The state should be spending those dollars on creating good jobs instead!