April 9, 2012
Tax expenditures are getting increased scrutiny from budget hawks and tax reformers. New Treasury estimates, released as part of President Obama's recent budget, indicate that these tax preferences will reduce individual and corporate income tax revenues by almost $1.1 trillion in 2012. Those provisions will also increase spending on refundable tax credits by $91 billion and will reduce payroll and excise tax receipts by $113 billion. Together, tax expenditures will total almost $1.3 trillion this year.