US Tax Breaks Cost USD 1 Trillion
March 26, 2012 Taxation in USA
WASHINGTON, D.C. – New research shows that dropping each one of the 200 tax breaks currently available in the US tax system would allow the government to slash the tax obligations of individual taxpayers in the country.
Every year the US government misses out on over USD 1.1 trillion in additional tax revenues due to the about 200 tax breaks and allowances offered in the US tax system. The revenue lost to the tax breaks is nearly equivalent to the annual budget deficit seen by the USA every year, according to the latest research published by the non-partisan think tank the Congressional Research Center (CRC).
The CRC claimed that the 20 most utilized tax breaks account for nearly 90 percent of the US national tax expenditures. The revenues lost through the 20 most popular tax breaks is equivalent to 74 percent of the expected total of collection of personal income taxes in the USA in the 2014 fiscal year.
If all of the tax breaks were abolished and the newly found revenues were used exclusively for the reduction of income tax rates, then personal income taxes could be drop by approximately 43 percent.
The Center conceded that removing tax breaks would be a politically difficult endeavor, and it is unlikely that all the tax breaks could be removed completely, and an attempt to remove the allowances would only yield partial results with savings of no more than USD 150 billion per year.
Photo by kenteegardin