State and local governments grant tax credits and incentives to large corporations for choosing to setup shop in their cities. The lure of creating new jobs and boosting the local economy spells success for state and local government officials.
According to Wikipedia, the source that popularized this pictorial maxim is a 17th-century carving over a door of the famous Tōshō-gū shrine in Nikkō, Japan. The three wise monkeys symbolize the proverbial principle "see no evil, hear no evil, speak no evil". There are many meanings associated with this proverb and it's often used to describe someone turning a blind eye.
Part 1 of a 3-Part Series
It’s no surprise that no one is talking about a new Financial Accounting Standards Board (FASB) pronouncement on government incentives that’s coming down the pike. For years, major corporations have been burying how they account for government incentives on their balance sheets & footnotes to their financial statements under some random line item like “Other Assets”.
The concept of accountability isn’t new — especially when discussing taxpayer dollars and where they are spent by government agencies. Governments are under constant scrutiny regarding tax revenue and expenditures from their constituents, the media, and the public as a whole. However, there has been an increasing call for accountability when it comes to corporate tax credits and incentives for economic development.