Tax Expenditure of the Week

Source: Seth Hanlon, Center for American Progress, January 12, 2011

The Center for American Progress has long called for greater scrutiny of “tax expenditures.” These are special exemptions, credits, and deductions littering the tax code that add up to $1.1 trillion annually. Subjecting these dozens of tax breaks to greater scrutiny is part of our broader focus on making government work better and achieving better results for the American people, which is the goal of CAP’s “Doing What Works” project.

To that end, our new “Tax Expenditure of the Week” series aims to explain the often-confusing constellation of tax breaks in a way the average taxpayer can understand. Every Wednesday we will focus on one tax expenditure, explaining what it is, what purpose it is intended to serve, and whether it is effective toward that purpose. We will also review any applicable reform proposals.

See also:

* Tax Expenditure of the Week: Tax-Free Retirement Savings
* Tax Expenditure of the Week: Tax-Free Health Insurance
* Tax Expenditure of the Week: The Mortgage Interest Deduction
* Tax Expenditure of the Week: State and Local Tax Deduction

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