Tax Expenditure

Tax Expenditure

The way in which a government uses a tax code to spend money. For example, suppose a government offers a tax credit for adopting a child. In such a case, an adoptive parent would pay less in taxes than he/she otherwise would, effectively receiving a subsidy from the government for adopting a child. Tax expenditures are popular ways for governments to encourage behaviors such as purchasing a home or having children.
References in periodicals archive ?
FTAs with Malaysia and Sri Lanka also witnessed growth in terms of tax expenditure as cost of revenue came out at Rs2.4bn and Rs3.162bn, respectively.
It would also highlight issues of environment, contingent liabilities, tax expenditure as well as economic and social indicators.
Studies have been conducted on the relationship between total costs to the state (via direct investment in social programs) and indirect financing through tax expenditures. Faricy and Ellis (2014) monitored both financing methods and their impacts on social programs and discovered that tax expenditure incentives generated higher support for these programs.
While on the one hand this could provide the necessary political support for reducing, eliminating or targeting tax breaks, on the other it would require the government to allocate what otherwise would have been tax expenditure to primary care (prevention) and secondary care (tests, specialist consultations and outpatient surgery) to substantially improve access to and use of the SUS.
It will also highlight issues of environment, contingent liabilities, tax expenditure as well as economic and social indicators.
The DOF also wanted to 'mandate the inclusion of all taxes in the computation of tax expenditure, including VAT and local taxes.'
The tax writers have indicated that their primary target is to eliminate the deduction for all state and local taxes, a tax expenditure that reduces federal revenue by about $100 billion a year (Joint Committee 2017).
While the behaviorist account sees the presence of an infra-marginal subsidy as evidence of a tax expenditure's failure, the expressivist and desert-based alternatives see it as evidence of success.
Part II explains the concept of a tax expenditure. Part III argues that claims under the FCA should include fraud relating to government spending in the form of tax expenditures.
The spouse and equivalent to married tax expenditure of $1.8 billion annually subsidizes couples in which one partner earns little.
Lowering of company tax, which caused a one-time tax expenditure of ILS114m, was attributed to the bank's fall in profits.