An Economic Analysis of Tax Base Broadening

In The Concord Coalition’s blog “The Tabulation,” Diane Lim Rogers writes about a recently released report from the Congressional Research Service (CRS) titled “The Challenge of Individual Income Tax Reform: An Economic Analysis of Tax Base Broadening.”

The CRS report finds that the 200+ tax expenditures for individuals are worth more than $1 trillion per year and “the largest 20 of them represent 90 percent of that revenue loss to the government.” Dr. Rogers adds that “when you look closely at that ‘Top 20’ list, it is easy to get discouraged about the prospects for substantial broadening of the tax base. [T]he largest tax expenditures look a lot more like ‘entitlements’ than ‘loopholes.'”

The CRS study concludes that “it may prove difficult to gain more than $100 billion to $150 billion [per year] in additional tax revenues through base broadening,” given the political popularity of the largest subsidies. But Dr. Rogers believes that we can do better than that. To continue reading her post on “The Tabulation,” click here.

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