Tax Expenditure

/ˈtæks ɪkˌspɛn.dɪ.tʃər/

Definitions

  1. (n.) A government revenue loss attributable to tax laws that provide special exemptions, exclusions, or deductions, reducing tax liability for certain activities or groups.
    The senator proposed reviewing the tax expenditures to evaluate their economic impact.

Forms

  • tax expenditure
  • tax expenditures

Commentary

Tax expenditures are often treated as government spending through the tax system; clearly defining them helps analyze fiscal policy alternatives.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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