Tax expenditures, the size and efficiency of government, and implications for budget reform

Leonard Burman, Marvin Phaup

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

One possible explanation for the difficulty in controlling the budget is that a major component of spending-tax expenditures-receives privileged status. It is treated as tax cuts rather than as spending. This paper explores the implications of that classification and illustrates how it can lead to higher taxes, larger government, and an inefficient mix of spending (too many tax expenditures). The paper then analyzes alternative budgeting approaches that would explicitly incorporate and measure tax expenditures. It concludes by analyzing ways to control tax expenditures (and other spending) and the special challenges presented by tax expenditures.

Original languageEnglish (US)
Pages (from-to)93-124
Number of pages32
JournalTax Policy and the Economy
Volume26
Issue number1
DOIs
StatePublished - 2012

Fingerprint

Tax expenditures
Government
Budgeting
Tax
Tax cuts

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

Tax expenditures, the size and efficiency of government, and implications for budget reform. / Burman, Leonard; Phaup, Marvin.

In: Tax Policy and the Economy, Vol. 26, No. 1, 2012, p. 93-124.

Research output: Contribution to journalArticle

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