Changes

'''Tax expenditures''' include tax credits (such as the child tax credit) and deductions (such as home mortgage deduction<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref> and the new [[Obamacare]] tax credit<ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011.</ref>) that are targeted only to those tax filers who are eligible and not to everyone, and when used by tax filers, reduce federal revenues that would otherwise have been collected.  

'''Tax expenditures''' include tax credits (such as the child tax credit) and deductions (such as home mortgage deduction<ref>[http://www.concordcoalition.org/publications/facing-facts/1996/0913/back-door-entitlement The Back-Door Entitlement], The Concord Coalition.</ref> and the new [[Obamacare]] tax credit<ref>[http://oversight.house.gov/wp-content/uploads/2012/02/10-27-11_Obamacares_Subsidies_and_Tax_Distribution_Final.pdf Impact of the Obamacare Tax Credits], House Committee on Oversight and Government Reform, Staff Report, October 27, 2011.</ref>) that are targeted only to those tax filers who are eligible and not to everyone, and when used by tax filers, reduce federal revenues that would otherwise have been collected.  

The policy is widely accepted that tax expenditures are a form of spending and analogous to [[discretionary spending]] or [[mandatory spending]] for those who meet statutory criteria. <ref>http://www.naeyc.org/files/naeyc/file/policy/federal/Budgetbackgrounder.pdf</ref>

The policy is widely accepted that tax expenditures are a form of spending and analogous to [[discretionary spending]] or [[mandatory spending]] for those who meet statutory criteria.<ref>http://www.naeyc.org/files/naeyc/file/policy/federal/Budgetbackgrounder.pdf</ref>

Every year, the [[U.S. Treasury]] publishes a tax expenditure budget as required by law. The net effect on the Treasury is the same.<ref>Stanley Surrey (former Asst. Secretary of Tax Policy), Pathways to Tax Reform: The Concept of Tax Expenditures (1973).</ref>  There is also case law that tax deductions, exclusions and credits are treated as un-appropriated government spending, or tax expenditure.

Every year, the [[U.S. Treasury]] publishes a tax expenditure budget as required by law. The net effect on the Treasury is the same.<ref>Stanley Surrey (former Asst. Secretary of Tax Policy), Pathways to Tax Reform: The Concept of Tax Expenditures (1973).</ref>  There is also case law that tax deductions, exclusions and credits are treated as un-appropriated government spending, or tax expenditure.

[[President Obama]]'s Simpson-Bowles Commission on Fiscal Responsibility reported in 2010 the that U.S. Tax Code is riddled with $1.1 trillion (roughly equal to current annual [[deficit]]s) in [[backdoor spending]] as hidden tax expenditures.<ref>[http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform]. December 2010. The White House. P. 29, pdf.</ref>

[[President Obama]]'s Simpson-Bowles Commission on Fiscal Responsibility reported in 2010 the that U.S. Tax Code is riddled with $1.1 trillion (roughly equal to current annual [[deficit]]s) in [[backdoor spending]] as hidden tax expenditures.<ref>[http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform]. December 2010. The White House. P. 29, pdf.</ref>

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[[Category:Budget Terms]]

[[Category:Budget Terms]]