Raising Revenue by Limiting Tax Expenditures
Limiting tax expenditures can raise revenue without increasing marginal tax rates. Such a policy is equivalent to reducing government spending now done as subsidies through the tax code for a wide range of household spending and income. This paper explores one way of limiting tax expenditures: a cap on the total reduction in tax liabilities that each individual can achieve by the use of deductions and exclusions. The analysis describes the revenue effects and the distributional consequences of such a cap, and examines the sensitivity of these results to various design features.
|Date of creation:||Nov 2014|
|Publication status:||published as Raising Revenue by Limiting Tax Expenditures , Martin Feldstein. in Tax Policy and the Economy, Volume 29 , Brown. 2015|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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