Representative Teresa Tanzi continues to be a fiscal watchdog, calling on the
state to begin close monitoring of the effectiveness of $1.7 billion worth of
tax breaks contained in the 2012 Tax Expenditures Report published recently
by the state. “The state grants these tax breaks
without a regular review to determine
the benefit to the economy or to our
taxpayers,” said Tanzi. “No one is
looking at the $1.7 billion we are
foregoing annually.”
Tanzi said that once a tax expenditure is added to the tax code, it can remain there indefinitely without any scrutiny or evaluation of whether it is necessary or yielding a positive return for the state.
For the past two years, Tanzi has introduced legislation with strong bipartisan
support requiring any new tax break to include a statement about what it is
supposed to accomplish, ways to measure outcomes, and expiration dates
that would provide the General Assembly with an opportunity to positively
reaffirm its effectiveness. She has also submitted and will continue to introduce legislation creating a
commission to review all existing tax expenditures and make recommendations
over time as to whether to maintain, strengthen or eliminate each tax-
expenditure program.
