Tax expenditure analysis reveals corporate beneficiaries, sparking public demand for transparency.
The article discusses how states can make the most of their tax expenditure budget by analyzing specific provisions. By focusing on provisions that lead to significant revenue loss, have a skewed distribution of benefits, and are politically sensitive, policymakers can better understand where the money is going. The author suggests creating task forces or subcommittees to review tax expenditures and identifying corporate beneficiaries by name to increase transparency. Not knowing which corporations benefit from tax incentives can hinder accountability and lead to misuse of public funds. For example, a report on New York's investment tax credit revealed that a few corporations received a large portion of the benefits, but without naming them, the public lost interest in the issue.