A tax expenditure is a 'tax break' allowed to a taxpayer or group of taxpayers, for example, by way of concession, deduction, deferral or exemption. The tax expenditure concept, as it was first identified, was designed to demonstrate the similarity between direct government spending on the one hand and spending through the tax system on the other. The identification of benefits provided through the tax system as tax expenditures allows analysts to consider the fiscal significance of those parts of the tax system which do not contribute to the primary purpose of raising revenue. Although a seemingly simple concept, it has generated a range of complex definitional and practical issues, and this book identifies and critically assesses the controversial aspects of tax expenditure and tax expenditure management.
• Proposes the concept of tax expenditure management and emphasises the need for a systematic approach to the identification and appraisal of tax expenditures • Unifies the disciplines of public finance and political science by offering a realistic approach to tax expenditure management • Proposes a broader definition of 'tax expenditure' which is not tied to the limited definition of the concept adopted in the US, thereby placing tax expenditure management upon a more consistent footing
Contents
1. Introduction; 2. The tax expenditures concept; 3. Reporting on tax expenditures; 4. The practical significance of tax expenditures; 5. The politics of tax expenditure management; 6. Managing tax expenditure controversies.
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