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This Review will focus primarily on the conceptual issues affecting the composition of the tax expenditure list and their relevance to current proposals for new tax legislation. In this context,the tax expenditure theory has been preeminently successful in shaping tax reform. The Review will not delve into the other aspect of Surrey's thesis, which calls for executive and congressional action to alter the budget procedure by integrating direct spending programs with the indirect tax expenditure programs and by adopting one amalgamated budget for the purpose of controlling overall federal spending. This facet of the Surrey thesis has not yet gained widespread congressional acceptance on the practical level.For those concerned with tighter control of the federal budget to reduce the deficit, however, this latest work amply describes and persuasively advocates the value of such an integrated budget policy.

Tax reform is coming, and it will be an important part of any plan to avert national fiscal disaster. The President's Fiscal Commission recently presented a proposal for comprehensive tax reform that will form the basis for serious legislative discussion. At the center of that proposal is elimination of "tax expenditures," which are provisions in the tax law that operate like direct government spending. They include the charitable deduction, the home mortgage interest deduction, the exclusion for employer-provided health insurance, the child credit, the earned income credit, education credits and deductions, the tax preference for retirement savings accounts like IRAs and 401(k) plans, and dozens of others. This article argues that elimination of tax expenditures is a flawed approach to tax reform. Tax expenditures are not an undifferentiated mass, but reflect a wide variety of federal policies, each of which requires independent evaluation. Before policymakers can decide whether to abolish tax expenditures, they need to know a lot more than the tax expenditure budgets currently reveal about what tax expenditures do, who benefits from them, and how much revenue could be raised by their repeal. They also need to decisively identify which provisions are tax expenditures, a perennial source of disagreement. This article argues that proposals to repeal tax expenditures reflect a normative preference for efficiency over equity, the traditional twin goals of tax policy, squandering the tax law's unique role in economic justice.

Corporate tax expenditures: information on estimated revenue losses and related federal spending programs -- Corporate tax expenditures: evaluations of tax deferrals and graduated tax rates -- International taxation: study countries that exempt foreign-source income face compliance risks and burdens similar to those in the United States.

The purpose of this dissertation is to examine an unexplored aspect of tax expenditures: the tax-price implications of tax exemptions, deductions and credits. Although this implication of tax expenditures has not been adequately examined, two separate lines of analysis have been suggested by the existing literature. Some authors have emphasized the welfare costs of tax expenditures. To the extent that tax expenditures narrow the tax base the introduction or extension of a tax expenditure undoubtedly makes the cost of raising revenue more than it would be otherwise. This kind of cost, denoted as a welfare cost, can be incorporated into a model of individual tax-price determination. On the other hand, other authors have emphasized another tax-price implication of tax expenditures: that the introduction or extension of a tax expenditure changes the cost-shares faced by each taxpayer, exclusive of any welfare cost. Since an individual's cost-share is nothing more than his personal tax base divided by the aggregate tax base, this result emerges because a tax expenditure usually changes the individual's tax base in a manner disproportionate to the change in the aggregate tax base. This dissertation will explore and combine each line of analysis, both theoretically and empirically. In the first portion of the dissertation a model of tax-price determination is developed that explicitly incorporates the welfare cost of taxation. Various tax expenditures are then introduced into the model and their effects on individual tax-price schedules discerned. In this way the influence a tax expenditure has on an individual's choice over public sector size can be surmised. The next portion develops within the confines of a simple median voter model some potential allocative implications of various tax expenditures. This portion traces out the expected change in the median voter's desired quantity of the collective good, given various tax expenditures, via an analysis of the cost-share impact of the various tax expenditures. Although in this section welfare costs are not explicitly considered or all possible political cases outlined, the analysis does look at a set of cases that are of general interest. The final portion of the dissertation considers the influence tax expenditures taken in toto have on both the cost-sharing arrangement among individual taxpayers and the welfare cost to individual taxpayers. The results are used to gauge both the distributive and allocative implications of tax expenditures. ; Ph. D.

Tax expenditures-special exemptions and exclusions, credits, deductions, deferrals, and preferential tax rates claimed by corporations, individuals, or both-support federal policy goals but result in revenue forgone by the federal government. Congress and the administration are reexamining tax expenditures used by corporations as part of corporate tax reform. This book describes trends in the number of corporate tax expenditures and estimated corporate revenue losses since 1986; describes the use of corporate tax expenditures in 2011; and compares the size of corporate tax expenditures to fede

AbstractIn the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

'This is one of those rare technical books which has an importance outside its own field' The Daily Telegraph.'One of the most stimulating post-war books on public finance' The Guardian.Part 1 examines the issue of Expenditure Tax in principle and includes chapters on the following:* Income, Expenditure and Taxable Capacity* The Concept of Income in Economic Theory* Taxation and Savings* Taxation and risk-bearing* Taxation and the Incentive to Work* Company Taxation* Taxation and Economic ProgressPart 2 examines the issue of Expenditure Tax in practice, asking whether personal expenditure tax