What is it about?
Can cutting taxes in a small area increase jobs and businesses in high poverty neighborhoods? I examine neighborhoods in two states: California and Tennessee. In the places where the Federal government had a tax credit on wages, there was a small increase in jobs, in particular in establishments with 5 or fewer employees. However, jobs fell for retail establishments. Fewer businesses closed.
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Why is it important?
This was the first article to look at the impact of the Community Renewal tax incentives, including the second and third round of the Empowerment Zones program. It shows how the incentives impact different kinds of businesses in different ways. Future programs need to be more deliberate.
Perspectives
This was a good experience for me personally because I had worked as a practitioner program and learned the hard way why scholars are skeptical about tax incentives targeted to places.
Dr Richard John Smith
Wayne State University
Read the Original
This page is a summary of: Empowerment for whom? The impact of community renewal tax incentives on jobs and businesses, Urban Studies, April 2014, SAGE Publications,
DOI: 10.1177/0042098014528398.
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