Difference between revisions of "Tax expenditure"
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| − | '''Tax expenditures''' include credits (such as the child tax credit) and deductions (such as home mortgage deduction) and the new [[Obamacare]] tax credit that are targeted only to those tax filers who are eligible and not to everyone, and when used by tax filers, reduce federal revenues that would otherwise have been collected. | + | '''Tax expenditures''' include credits (such as the child tax credit) and deductions (such as home mortgage deduction)<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref> and the new [[Obamacare]] tax credit that are targeted only to those tax filers who are eligible and not to everyone, and when used by tax filers, reduce federal revenues that would otherwise have been collected. |
The policy is widely accepted that tax expenditures are a form of spending and analogous to [[discretionary spending]] or [[mandatory spending]] for those who meet statutory criteria. <ref>http://www.naeyc.org/files/naeyc/file/policy/federal/Budgetbackgrounder.pdf</ref> | The policy is widely accepted that tax expenditures are a form of spending and analogous to [[discretionary spending]] or [[mandatory spending]] for those who meet statutory criteria. <ref>http://www.naeyc.org/files/naeyc/file/policy/federal/Budgetbackgrounder.pdf</ref> | ||
Revision as of 08:02, January 14, 2013
Tax expenditures include credits (such as the child tax credit) and deductions (such as home mortgage deduction)[1] and the new Obamacare tax credit that are targeted only to those tax filers who are eligible and not to everyone, and when used by tax filers, reduce federal revenues that would otherwise have been collected.
The policy is widely accepted that tax expenditures are a form of spending and analogous to discretionary spending or mandatory spending for those who meet statutory criteria. [2]
Every year, the U.S. Treasury publishes a tax expenditure budget as required by law. The net effect on the Treasury is the same.[3] There is also case law that tax deductions, exclusions and credits are treated as expenditures.
- ↑ The Back-Door Entitlement, The Concord Coalition.
- ↑ http://www.naeyc.org/files/naeyc/file/policy/federal/Budgetbackgrounder.pdf
- ↑ Stanley Surrey (former Asst. Secretary of Tax Policy), Pathways to Tax Reform: The Concept of Tax Expenditures (1973).