New Rule Could Require Governments to Report Tax Incentives as Lost Income

It’s the biggest effort yet to make government tax subsidies more transparent.

Corporate tax incentives have become an increasingly popular way for state and local governments to try to attract new businesses. Now those subsidies could begin affecting governments’ budgetary bottom lines, under an accounting change being considered that would require reporting those incentives as lost income in annual financial reports.

by Liz Farmer

Full Story: http://www.governing.com/topics/finance/The-Biggest-Effort-Yet-to-Make-Government-Tax-Subsidies-More-Transparent.html