California gives corporations billions of dollars in special tax breaks each year on the assumption that they will generate more job-creating investment.
However, state officials only occasionally check on whether these loopholes actually do what they are supposed to do, or just fatten corporate treasuries. In fact, a new nationwide study of how states manage their “incentives” says that California’s oversight is one of the weakest.
“California is trailing other states because it has not adopted a plan for regular evaluation of tax incentives,” Pew Charitable Trusts concludes in its state-by-state examination.
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