Hearings on Enterprise Zones

Journal of Accountancy, December 1989 | Go to article overview

Hearings on Enterprise Zones


HEARINGS ON ENTERPRISE ZONES

The House Ways and Means Committee held public hearings on the Bush administration's enterprise zone proposal and the Enterprise Zone Improvements Act of 1989 (HR 6), introduced by Congressman Charles B. Rangel (D-N.Y.).

Rangel has described enterprise zones as a way "to stimulate the creation of new jobs, particularly for disadvantaged workers and long-term unemployed individuals," by encouraging private businesses to invest in inner-city communities across this country.

Kenneth Gideon, assistant secretary for tax policy of the Treasury Department, told the committee the administration supports the creation of enterprise zones because "the economic problems faced by these urban and rural areas require specifically targeted incentives."

However Congressman Donald Pease (D-Ohio) expressed concern that enterprise zones would allow wealthy individuals to shelter income in limited partnerships designed to take advantage of the tax credits.

Competing proposals. The administration's proposal would provide a 5% refundable tax credit for the first $10,500 earned by individuals working in a zone and having total wages below $20,000. …

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