Auditor: tax code lacks accountability

BOSTON, Mass. (WWLP) - Massachusetts is giving billions of dollars in tax breaks to corporations to encourage job growth, but the state auditor says those dollars aren’t being accounted for.

State Auditor Suzanne Bump says after reviewing 91 of 203 state tax expenditure programs, collectively valued at $2.2 billion dollars, it’s “clear that our tax code lacks basic accountability and transparency.”

“Once a tax break gets passed, however, it goes into a black box,” said State Auditor Suzanne Bump, “seldom, if ever, does anyone look back and determine whether it’s working as intended or whether there’s a continued public benefit.”

Out of the 91 businesses reviewed, Auditor Bump says only eight had a sunset clause that would set a time in the future where the effectiveness of tax breaks would be evaluated. Furthermore, only ten had “clawback” provisions which allow the state to recoup costs from unmet obligations.

“Massachusetts is near the last in states in terms of tax credit transparency and accountability,” said Senator James Eldridge (D-Acton), “so we are not a leader, we are far, far behind.”

Thursday, the Joint Committee on Revenue heard testimony on a set of bills, including one written by Senator Eldridge, that would require unified data collection to track how tax benefits are encouraging job growth. Other bills sought to achieve accountability by including “clawback” provisions and other remedies within tax expenditure programs.

“If there’s a dollar going, we [should expect] a return on investment,” said Committee on Revenue member, Rep. Denise Andrews (D-Orange). “The citizens expect the same thing and better, which they are not getting quite enough of yet in government.”