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Targeting targeted breaks in Idaho

June 15, 2010

David Brunori reports on something I'd like to see somebody try in Iowa:

An Idaho legislator filed suit against the State Tax Commission alleging that the commission unfairly gives secret tax breaks to wealthy and well connected citizens who game the system. Rep. Shirley Ringo says the commission violates the state constitution's uniformity requirements (that everyone be treated equally) and costs the state millions of dollars in lost revenue. Ringo alleges that the commission routinely gives secret tax breaks to friends of politicians and prominent business leaders.

In Iowa the breaks are only semi-secret. The politicians like to issue press releases about the jobs they "save" or "create" giving away your money with tax credits -- of course omitting the larger number jobs they destroy by taking the money from you and your employer to give to the well-connected. But the use of the funds is a secret, protected by the courts of the great state of Iowa (though sometimes we get a frightening peek behind the curtain).

It's certainly unfair and futile for the state to take money from everybody to give to a favored industry or employer. Is it illegal? Probably not, but it would be nice if somebody filed suit just to make sure.