The State Doesn't Evaluate the Benefits Probably Because They Are Largely Nonexistent

Last month, the Georgia Department of Audits and Accounts issued a report charging the state legislature with issuing corporate tax credits without evaluating their costs and benefits. You can download the full report here.

The AJC reports that there is a little blame casting on who should ultimately have authority to monitor accountability. It appears that the Governor's office does a back of the napkin calculation for credits it vetoes and does nothing for credits that are signed into law. The legislature obviously does nothing, after all, what's the use once the press release, ribbon cuttings and photo ops are over? The Department of Revenue says it doesn't have the job of providing cost benefit analysis on tax credits, with which I agree. The DOR should only be charged with compliance and enforcement issues related to existing tax law not legislative policy decisions.

I've written before about tax credits in general. If the legislature wants to lower the cost of doing business it should lower tax rates for all businesses and not offer targeted tax credits only to those businesses that have the politicians' ears.

I suppose it could be worse. I could live in Iowa as Joe Kristen reminds me on an almost weekly basis.