California’s state government is dishing out $73 billion in tax breaks annually to millions of people and hundreds of interests. But there’s no evidence that this generosity is good or bad for the state.
Does it create jobs? Attract businesses to California? Help companies expand?
You’d think Gov. Gavin Newsom and the Legislature would want to know whether the levy largess has been beneficial for California or just a giveaway.
That’s especially true now as state politicians face a projected $54-billion budget deficit because the economy was straitjacketed to prevent the spread of the coronavirus. Tax receipts are projected to plummet by $41 billion through June 2021.
“We don’t have a clue” about the effectiveness of tax breaks, says