New Analysis Shows “Tax Expenditures” Overall Are Costly And Regressive

Source: Chye-Ching Huang and Hannah Shaw, Center on Budget and Policy Priorities, February 23, 2009

Findings Highlight Need to Restrain Tax Subsidies As Part of Solution to Long-Term Budget Problems

“Tax expenditures” for individuals totaled about $760.5 billion in 2007, topping what the federal government spent on either national defense or all non-defense discretionary programs, a new analysis by the Urban Institute-Brookings Institution Tax Policy Center (TPC) shows.

In most cases, these tax expenditures are also regressive — that is, they benefit high-income taxpayers the most. In light of their high cost and regressive nature, they should be “on the table” when efforts to address the nation’s long-term budget problems are mounted.

Leave a Reply