Manage episode 193549323 series 124879
Chasing Amazon with losing giveaways. Matthew Mitchell @MattMitchell80 @Mercatus
In 1993, the federal government began to offer tax incentives to employers located in parts of economically distressed areas, creating two different kinds of programs: Empowerment Zones and Enterprise Communities.
Empowerment Zones (EZs). Areas designated as Empowerment Zones had at least 20 percent of their populations in poverty. EZs were placed both in urban areas, such as Detroit, and in rural areas, such as the Rio Grande Valley in Texas. These areas were relatively small portions of the cities by land area and generally overlapped with what were impoverished areas. The EZs had a few other benefits besides the general tax incentives, such as $100 million in Social Services Block Grant funds. The EZs also were granted wage tax credits, meaning firms were paid for employees they took on.
Enterprise Communities (ECs). Many of the nominees that did not receive EZ status were awarded runner-up status, termed Enterprise Community (EC), which offered an overall less generous package of assistance with a limited set of tax incentives. The essential differences between EZs and ECs are that EC employers could not claim the wage tax credit, and EC zones were typically allowed only $3 million in Social Services Block Grant funds.
2590 episodes available. A new episode about every hour averaging 13 mins duration .