Reconsidering Tax Expenditure Estimation: Challenges And Reforms
We examine the measurement of tax expenditures and offer recommendations aimed at improving their value to analysts and policymakers. We use calculations from NBER’s TAXSIM to illustrate some of the problems with the current methodology for estimating tax expenditures. Unlike most previous work on the topic, we focus on how features of the current tax system complicate and compromise the value of information provided by the tax expenditure budget. Our recommendations for reform include presenting revenue estimates for major tax expenditures, reporting some negative tax expenditures, grouping expenditures by conceptually-linked categories, and establishing an appendix for tax expenditure estimates of permanent versions of expiring provisions and AMT interaction effects.
|Date of creation:||03 Jul 2008|
|Date of revision:|
|Contact details of provider:|| Postal: New Jersey Hall - 75 Hamilton Street, New Brunswick, NJ 08901-1248|
Phone: (732) 932-7363
Fax: (732) 932-7416
Web page: http://economics.rutgers.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barthold, Thomas A. & Koerner, Thomas & Navratil, John F., 1998. "Effective Marginal Tax Rates Under the Federal Individual Income Tax: Death by One Thousand Pin Pricks?," National Tax Journal, National Tax Association, vol. 51(n. 3), pages 553-64, September.
- Davie, Bruce F., 1994. "Tax Expenditures in the Federal Excise Tax System," National Tax Journal, National Tax Association, vol. 47(1), pages 39-62, March.
- Feenberg, Daniel R. & Poterba, James M., 2004.
"The Alternative Minimum Tax and Effective Marginal Tax Rates,"
National Tax Journal,
National Tax Association, vol. 57(2), pages 407-27, June.
- Daniel Feenberg & James Poterba, 2003. "The Alternative Minimum Tax and Effective Marginal Tax Rates," NBER Working Papers 10072, National Bureau of Economic Research, Inc.
- Ackerman, Jonathan Z. & Altshuler, Rosanne, 2006.
"Constrained Tax Reform: How Political and Economic Constraints Affect the Formation of Tax Policy Proposals,"
National Tax Journal,
National Tax Association, vol. 59(1), pages 165-87, March.
- Rosanne Altshuler & Jonathan Ackerman, 2006. "Constrained Tax Reform: How Political and Economic Constraints Affect the Formation of Tax Policy Proposals," Departmental Working Papers 200624, Rutgers University, Department of Economics.
- Burman, Leonard E., 2003. "Is the Tax Expenditure Concept Still Relevant?," National Tax Journal, National Tax Association, vol. 56(3), pages 613-27, September.
- Todd Sinai & Joseph Gyourko, 2004. "The (Un)Changing Geographical Distrituion of Housing Tax Benefits: 1980-2000," NBER Chapters, in: Tax Policy and the Economy, Volume 18, pages 175-208 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:rut:rutres:200804. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.