The termination of enterprise zone tax credits is a huge loss for Long Beach. Over 550 businesses will be affected. The incentive for these businesses to hire workers from disadvantaged zip codes and neighborhoods is now reduced.
The state has no problem with free handouts, but when it comes to local businesses, which bring jobs and revenue to the state, they repeal their tax benefits.
Our local economy is like an ecosystem. When a local business is limited to growth and their incentives to expand are taken away there is a direct affect on new and existing jobs. Without new jobs and possibly the loss of existing jobs you will see a decrease in consumer spending, which in turn will hurt other local businesses. This cycle will continue when programs like the enterprise zone tax credit are reduced.