Figure 2: Tax Expenditure Revenue Loss Estimates (Fiscal Years 1986-2014)
This image is excerpted from a U.S. GAO report: www.gao.gov/products/GAO-14-387
TAX POLICY: Economic Benefits of Income Exclusion for U.S. Citizens Working Abroad Are Uncertain
Notes: Changes in economic conditions and estimation techniques can affect revenue loss estimates for tax expenditures, making them differ from year to year. Also, legislation affecting tax rates or the tax structure affects tax expenditure estimates. When statutory rates increase, a taxpayer’s ability to avoid tax on a portion of income is worth more; consequently, tax expenditures are worth more. Likewise, when rates decrease, tax expenditures are worth relatively less.
Figure 2: Tax Expenditure Revenue Loss Estimates (Fiscal Years 1986-2014)
This image is excerpted from a U.S. GAO report: www.gao.gov/products/GAO-14-387
TAX POLICY: Economic Benefits of Income Exclusion for U.S. Citizens Working Abroad Are Uncertain
Notes: Changes in economic conditions and estimation techniques can affect revenue loss estimates for tax expenditures, making them differ from year to year. Also, legislation affecting tax rates or the tax structure affects tax expenditure estimates. When statutory rates increase, a taxpayer’s ability to avoid tax on a portion of income is worth more; consequently, tax expenditures are worth more. Likewise, when rates decrease, tax expenditures are worth relatively less.