Do Enterprise Zones Work?


Enterprise-zone legislation, which would give tax breaks to businesses willing to locate in depressed areas, never made it to the floor of the House of Representatives despite its strong endorsement from President Reagan. But this year, with a new administration and a new housing secretary, its chances may be greater than ever before. Congress would do well to take a close look at the idea, however. Despite extensive experience with such zones in the states, it is not at all clear that enterprise zones are the answer for distressed inner cities.

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