The Commonwealth Institute for Fiscal Analysis released a report (pdf) this morning which assesses the cost of Virginia’s tax expenditures. Calling it a $2.5 billion drain on revenue, the Institute says that these expenditures – tax exemptions, exclusions, deferrals, credits, or preferential rates in the tax code – are implemented and then forgotten.
In a conference call earlier today, Institute Executive Director Michael Cassidy pointed out that Gov.-Elect Bob McDonnell, like his opponent, Creigh Deeds, called for better performance management. One of the recommendations of the report is to regularly publish “a tax expenditure report that is accessible to the public, broad in scope with detailed information, and with an analysis of whether the programs are meeting stated goals.”
The Institute takes no position on the relative merits of the various tax expenditures, the largest of which is $950 million for car tax relief. What it is attempting to do is point out that these items should face the same scrutiny as other budget expenditures.
I think that’s a pretty good idea.














