GAO Reports  
GGD/AIMD-94-122 June 03, 1994

Tax Policy: Tax Expenditures Deserve More Scrutiny

At a time when the federal government faces hard choices to reduce the deficit and use available resources wisely, no federal expenditure or subsidy should escape careful review. Tax expenditures, or revenues forgone through preferential provisions in the tax code--for example, deductions, exemptions, and credits--can be a useful part of federal policy, but they should be scrutinized more closely and more often to ensure that, when used, they are the most effective means to an end. This report assesses the growth of federal revenues forgone through income tax expenditures and presents three options for reviewing and controlling their growth: (1) strengthening and extending techniques now used by congressional tax-writing committees, (2) integrating tax expenditures further into the budget process, and (3) reviewing tax expenditures jointly with related federal outlay programs.

Click here for the full GAO Report, PDF Version, 140pgs. 11.1M

1994 GAO Reports | GAO Reports Main | Home

  to download the Adobe Acrobat PDF Reader