Thursday, January 13, 2005
The Joint Committee on Taxation yesterday released Estimates Of Federal Tax Expenditures For Fiscal Years 2005-2009 (JCS-1-05).
Tax expenditures are "revenue losses attributable to provisions of the Federal tax laws which allow a special exclusion, exemption or deduction from gross income or which provide a special credit, a preferential rate of tax or a deferral of tax liability." The five largest tax expenditures provide $2.1 trillion of tax benefits:
- $597 billion: pensions
- $493 billion: employer-provided health insurance
- $434 billion: home mortgage interest
- $356 billion: reduced tax rates on dividends and capital gains
- $203 billion: child tax credit