Enterprise Zones: Prospects for Economic Growth : Hearing Before the Subcommittee on Economic Stabilization of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, One Hundred Second Congress, Second Session, February 20, 1992, Volume 4 |
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administration ALTHAUS ARMEY blighted areas budget budgetary capital gains tax CARBINE Chairman CARPER Charles Rangel Cities Cities Cities communities competitive Congress Congressman cost COWDEN create criteria designation distressed areas Earl Graves economic development ECONOMIC STABILIZATION effective eligible employees employment Enterprise Zone bill enterprise zone legislation enterprise zone program ENTERPRISE ZONE PROPOSALS entrepreneurs evaluation FEBRUARY 20 federal enterprise zone federal government federal program firms fiscal funds going growth hiring idea impact increase Indiana inner city investment investors issue Jack Kemp Jersey job creation LEVITAN limit located Mayor million offer opportunity Papke percent potential poverty prise Zone problems property tax Rangel redevelopment response revenue revitalize RUBIN rural areas Secretary KEMP sector small businesses SUBCOMMITTEE ON ECONOMIC subsidies success talk targeted tax credits tax expenditures testimony Thank tives UNIVERSITY OF RICHMOND zone businesses zone czar zone incentives zone residents
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Page 72 - The second incentive is expensing of investor purchase of newlyissued small zone corporate stock. Because start up businesses typically have little or no tax liability in their first years, there is a limit to what direct tax reductions can do to help these firms. The Administration proposes giving investors an upfront deduction for up to $50,000 per year of new equity investment, with a $250,000 lifetime limit, for investment in corporations having less than $5 million of total assets.
Page 88 - BEFORE THE SUBCOMMITTEE ON ECONOMIC STABILIZATION OF THE HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS Mr.
Page 61 - They tend to be independent. They are volatile. The very spirit that gives them their vitality and job generating powers is the same spirit that makes them unpromising partners for the development administrator...
Page 1 - The subcommittee met, pursuant to notice, at 10:10 am, in room 2222, Rayburn House Office Building, Hon. Thomas R.
Page 73 - ... eventually since the entire amount of the investment plus any net gain will be taxed as ordinary income at the time the enterprise zone stock is disposed of. Payment of Federal taxes would only be deferred, not eliminated. The third incentive is a 5 percent refundable income tax credit for the first $10,500 of wages to individuals working in a zone and having total wages below $20,000. The maximum credit will be $525, and the credit will phase out between $20,000 and $25,000 of total wages.
Page 74 - ... Earned Income Tax Credit passed last year to support families who are working to become independent of welfare. The President's enterprise zone initiative will be available to workers and investors in up to 50 zones. The 50 zones will be phased-in, 15 in 1992, 15 in 1993, 15 in 1994 and 5 in 1995. As I said before, my personal opinion is that enterprise zones in the long run will actually raise money. The administration's revenue estimates do not assume a change in levels of economic activity...
Page 122 - ... o Incentives for job training. Many of the zones experience acute unemployment problems due to individual plant closings and shifts in technology. The federal enterprise zone policy should emphasize training and retraining assistance, possibly through the mechanism provided by the Job Training Partnership Act. 0 Small issue industrial development bonds (IDBs).
Page 69 - According to a recent study, 9,193 jobs through mid-1988, $243 million in payroll, $1.88 billion in output, and $803 million in private investment in 1987 and 1988 alone have been created in enterprise zones throughout that State. I might add that New Jersey's enterprise zone program has created so much new economic activity in the zones that the program has been estimated to raise between $1.90 and $5.20 for every dollar of tax incentives they provided. Learning from these State experiences, the...
Page 70 - I are confident that eliminating the capital gains tax in depressed areas can help "percolate" a whole new generation of small business entrepreneurs and community leaders, set in motion a process of self-improvement and job-generation, but most of all restore hope for progress in America's future. The second incentive is expensing of investor purchase of newly issued small zone corporate stock.