US Tax Breaks Exceed Tax Revenues
April 16, 2013 Taxation in USA
WASHINGTON D.C. – Tax breaks are significantly lowering the tax revenues in the USA, with new indications arising that the cuts are poorly targeted and cost too much.
The latest report from the US Government Accountability Office released on April 15th indicates that in 2011 the US government spent more money on corporate tax breaks than it received back as revenues from corporate income taxes in the same year.
According to the report, in 2011 corporate taxpayers were offered 80 separate tax breaks, credits, deductions, deferrals and preferential tax rates, which cumulatively set the government back by USD 181.3 billion in the said year, while total tax revenues from corporate income taxes were only USD 181.1 billion.
The Office found that 56 of the available 80 tax breaks are used not only by corporations, as intended originally, but also by individual taxpayers, who claimed and received over USD 125 billion from these tax concessions over the course of the same year.
As part of the investigation into the effectiveness of the tax breaks, the report showed that nearly one third of the cuts which are only available to corporations are poorly targeted and overlap with government spending programs which are already in place.
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