States are creating fiscal risks for themselves by neglecting to control the costs of tax incentives for economic development, according to a new report from the Pew Center on the States.
Even in tight fiscal conditions, state lawmakers often approve tax incentives for economic development without reliable estimates of their budget impact or limits on their annual cost, the Pew report noted. By omitting these steps at the outset, states have created incentives that can grow in price rapidly and unpredictably, raising the risk of budget shortfalls and unplanned spending cuts or tax increases to close them.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access