How much spending is uncontrollable? Q.How much spending is uncontrollable? A.Technically, lawmakers can control all spending except the interest due on government debts. However, entitlement spending is sometimes said to be uncontrollable for political rather than legal reasons. It can always be controlled legally by reforming programs, but when an entitlement is extremely popular, reform may require more political courage than is readily available. Similar concerns apply to many tax expenditures—tax breaks that function much as spending programs. Read more about How much spending is uncontrollable?
What are tax expenditures and how are they structured? Q.What are tax expenditures and how are they structured? A.Tax expenditures are special provisions of the tax code such as exclusions, deductions, deferrals, credits, and tax rates that benefit specific activities or groups of taxpayers. Read more about What are tax expenditures and how are they structured?
Why are tax expenditures controversial? Q.Why are tax expenditures controversial? A.To some, tax expenditures are spending items that do not belong in the tax code. To others, they are merely a way of reducing taxes, and repealing them would amount to a tax increase. Read more about Why are tax expenditures controversial?
