tax policy center
publications
HOME | TAX TOPICS | NUMBERS | TAX FACTS | LIBRARY | BRIEFING BOOK | EVENTS | LEGISLATION | PRESS | TAXVOX Blog | About Us help get RSS feed

Advanced Search

by Topic:

by Author:

by Type:

by Date Range:
  From last wks

     

library

Evaluating Broad-Based Approaches for Limiting Tax Expenditures

Eric Toder, Joseph Rosenberg, Amanda Eng

Published: February 06, 2014
Availability:
 PDF |  Printer-Friendly Version

Share:  Share on Facebook Share on Twitter Share on LinkedIn Share on Yahoo Buzz Share on Digg Share on Reddit

This paper evaluates six options to achieve across-the-board reductions to a group of major exclusions and deductions in the income tax: (1) limiting their tax benefit to a maximum percentage of income; (2) imposing a fixed dollar cap; (3) reducing them by a fixed-percentage amount; (4) limiting their tax saving to a maximum percentage of their dollar value; (5) replacing preferences with fixed rate refundable credits; and (6) including them in the base of the existing Alternative Minimum Tax (AMT). We discuss issues of design, implementation, and administration, and simulate the revenue, distributional, and incentive effects of the various options.