JCT Provides Overview of Tax Expenditures

JCT Provides Overview of Tax Expenditures

U.S. Joint Committee on Taxation

In a December 18 report, the Joint Committee on Taxation provided an overview of federal tax expenditures for fiscal 2019 to 2023, including discussion of the concept of tax expenditures, how they are measured, and updated estimates.

In a December 18 report, the Joint Committee on Taxation provided an overview of federal tax expenditures for fiscal 2019 to 2023, including discussion of the concept of tax expenditures, how they are measured, and updated estimates.

In a December 18 report (JCX-55-19), the Joint Committee on Taxation provided an overview of federal tax expenditures for fiscal 2019 to 2023, including discussion of the concept of tax expenditures, how they are measured, and updated estimates. Among the largest tax expenditures, defined benefit plans are projected to cost $552.8 billion from 2019 to 2023; the reduced tax rate on the active income of controlled foreign corporations is estimated to cost $409.9 billion; reduced tax rates on capital gains and dividends are expected to cost $845.3 billion; the child tax credit is estimated to cost $596.2 billion; the employer healthcare exclusion is projected to cost $933.9 billion; the earned income tax credit is expected to cost $366.5 billion; and defined contribution plans are projected to cost $775.6 billion.

In a December 18 report (JCX-55-19), the Joint Committee on Taxation provided an overview of federal tax expenditures for fiscal 2019 to 2023, including discussion of the concept of tax expenditures, how they are measured, and updated estimates. Among the largest tax expenditures, defined benefit plans are projected to cost $552.8 billion from 2019 to 2023; the reduced tax rate on the active income of controlled foreign corporations is estimated to cost $409.9 billion; reduced tax rates on capital gains and dividends are expected to cost $845.3 billion; the child tax credit is estimated to cost $596.2 billion; the employer healthcare exclusion is projected to cost $933.9 billion; the earned income tax credit is expected to cost $366.5 billion; and defined contribution plans are projected to cost $775.6 billion.