:::Simpson-Bowles report calls tax expenditures backdoor spending. While open discussion of this may be something new, tax expenditures are the result of authorizing legislation that brings total federal spending in above or below baseline projections. Tax cuts must be "paid for" (since Gramm-Rudman). Hence tax cuts, loopholes, provisions, incentives, etc. have become "tax expenditures" needing budget authorization from congress, and its own article entry, too. | :::Simpson-Bowles report calls tax expenditures backdoor spending. While open discussion of this may be something new, tax expenditures are the result of authorizing legislation that brings total federal spending in above or below baseline projections. Tax cuts must be "paid for" (since Gramm-Rudman). Hence tax cuts, loopholes, provisions, incentives, etc. have become "tax expenditures" needing budget authorization from congress, and its own article entry, too. |