AirTalk for May 31, 2013

Strip club receiving Enterprise Zone credits stokes criticism of tax-incentive program

US-LIFESTYLE-STRIP-CLUB

Brendan Smialowski/AFP/Getty Images

A dancer performs at a strip club.

An investigation by Sacramento news station, KCRA, revealed an area strip club has been receiving hundreds of thousands of dollars in tax credits, thanks to the contentious Enterprise Zone program.

The embattled state program was created 30 years ago to help create jobs in economically depressed regions. Gold Club Centerfolds gets $37,000 tax break for each server and clerk it employs.

The club's CEO, Mark Boyles conceded, "I’m loving this deal, but I don’t see where it necessarily makes sense for the taxpayers." The controversy comes at a time when Governor Jerry Brown is trying to revamp the program entirely, describing EZ credits as old tools for the old economy. Even though big businesses such as Costco and Federal Express are beneficiaries, supporters of EZ credits, say it's irrelevant which companies get the credits, what matters is creating jobs for folks who would otherwise be unemployed.

Guests:
Steve Smith, Spokesperson, California Labor Federation

Armando Jamjian, Certified Public Accountant and Managing Partner of Rivera, Jamjian & Dillard based in Pasadena


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