Money lost on tax expenditures is money that could fund necessary programs in education, healthcare, transportation, and infrastructure. Tax expenditures include exclusions, exemptions, deductions, credits, preferential tax rates and other special tax provisions. The Department of Finance creates an annual list of tax expenditures but does not evaluate the effectiveness of taxpayer's billion-dollar investments. There is no way to determine whether tax expenditures have any beneficial impact on the state's economy or whether companies which receive tax breaks provide their workforce with adequate wages and benefits. This lack of oversight and accountability over taxpayer funds is disturbing in today's booming economy, which many hard-working families are not sharing.
Productivity is up, but work hours are longer and real wages are down.
Only six states in the nation have a greater share of workers living in poverty. According to Time magazine, it costs every working person the equivalent of two weeks pay every year to fund federal corporate welfare. As California looks for closer oversight and accountability, it is inconsistent to give away billions of dollars in tax expenditures without effective disclosure. Economic development program accountability provisions are part of state or local law in thirteen states, including Arizona, Iowa, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New York, North Carolina, Washington, and Wisconsin. THE BILL AB 1220 would provide necessary oversight to corporate tax expenditures.