Comptroller Report Highlights Lax Oversight of Corporate Tax Subsidies

Corporations should have effective independent oversight or auditing to ensure they're receiving only the tax credits they've earned.

Published on Jan 5, 2022 in Economic Justice, Tax and Budget

A report by the state Comptroller’s Office released today finds that the New Jersey Economic Development Authority (EDA) can and should do more to ensure businesses do not receive tax credits they have not earned. Specifically, the report highlights how the EDA still allows corporations to self-report data on job creation without independent oversight or auditing. In response to this report, New Jersey Policy Perspective releases the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“This report shows that, with billions of taxpayer dollars on the line, the honor system is not an appropriate monitoring system.

“Handing out corporate tax credits based on the promise of ‘job creation’ works only if the state routinely verifies that the jobs are actually created. Unfortunately, no such verification system is in place. Instead, corporations are asked to report their own jobs data without effective oversight or independent auditing. Accountability to the people of New Jersey shouldn’t be treated as an afterthought.” 

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