•
•
in
Proponent of enterprise zo
proach argue t their program
d privi inere d emp oyment fo
unemployed poor urban and
In ords of President
Reagan, ''It's time for us to fmd out if
the 0 mo dynamic and construe 0
force kno to man - free enterp 0
and the profit mot 0 - can be brought
to play goftl1ll1lent b uc cy
d programs ha f 0 "
Yet look at the enterp 0
zone concept that it 0 deeply
f1a ed doomed to ineritable f
The propo uld retult 0
JiIllame�t of a type of ''runaway
hich ould be IUb d in
f
itI protectio and benefi for orken.
DecreUed local in an enter­
even gre ter .
upon the local conununity to
lCIl400ll and Yital temce .
final anaIy 0 the
beJJllefic:iaJ:llel of this
oreo r, uel Pierce, th dmini-
stnlticJ- In's Secretary of Housing,
admitted that there are ''hundred
,
maybe - pro b thou <is" of
t d meet the b 0 criteria to be
d clared an en terprile zone. Yet even if
the program had a chance of ceeeding
it uld be impl nted only in 25
n locali 0 per year. Clearly enter-
zone are not real an r to
po rty.
t th nation. eed 0 not feebl
ttempt at furth tax giYea y. t
need 0 no a competition
to hich community can create an
environment of increued profi for the
ealthy and decreased nice for local
re . ents.
In e fmal bat our country
a compre program of
reindustrialization and an industrial
policy which recognizes that America's
orkers, both B d bite, are i
grea re urce. SUch policy ould
emphasize incre d jobs training "and
education hich could help prepare
young wor en for meaningful jobs in
gro iod
c
- The tion's private
are in jeopardy
IUllIIUIII adlJrdDiltration rlduce some
of its pro� 1983 cutb in
dent aid, accordin& to Chris-
to r F. EcUey, executiYe director of
the United C F
� die . cast," Edley °d in a
before 1 POO umni
pporten of the 42 private, historically
Fro
APRIL 14 - 20. 1 2 THE CITIZE
PAGE 3
r
ASHINGTO Tho
political hurdle c eared
the R administration unveil d
its plan for estab 0 0
zone" in decaying urb
architect of the program y it is still
in need of some ddruenal fine-tuning.
stuart . Butler, the British-born
urban economist who fir brought the
concept to the attention of economic
policy m er in the United State in a
1979 Heri e Foundation udy, y
the dmini tration' plan will ne d to
be revised if enterprise zone are to reach
their full potential.
For e ample, Oro Butler note,
"despite the k y rol of small busin
in "the enterpri zone concept, the
dministr tion' n propo offer such
firms almo nothing.
In tead, he ys, ne small firms are
faced with a Catch-22 itu tion. "To
encourage ne companie to form and
gro , the plan offers credi
busin taxe that more money can
be retained for exp ion. But b1usil°lesses
mu be successful and profi bl befor
they will 0 e enough to benefit
from the bre designed to make them
cce ul and profitable," Dr. Butler
d to in in on -term or 0 -
nture if th y can enjoy
mediate tax bre ... In on in n ,
all firms ould be permitted . to
deduc th entire in ent from their
taxab income.. 0 pro 0 ding money
ept in t finn for a minimum period
- perhap three y
Dr. Butler blames th of th
n ded venture-capital tax incen . in
the dministration' p to dispute
between the Departmen of Tre
and Housi g and Urb Development.
"HUD pre d for bold ppro and
Tre , eptical of the concept'
promised payoff: and fearful of po ibl
nue 10 s, pu ed for
version."
Dr. Bu er
plan is 0
note.
"It' cl from the history of IRA
ccount , housing, wildcat oil drillings,
and similar that Americans e
Co'ed
con­
of
10
E
sary dinner held here.
"If certain mo f ud
asbingtOD that are" no on ,
there 0 a danger t this nation will
} many of the priftte, predominantly
B colle that it n ," he added.
Preliminuy fi o. te that pro-
po cut s in a number of federal
dent °d programs Wi1l result in a
of me 48 milliOn to CF
institutio d their studen
y 1983.