Dallas Morning News, Tax Breaks Americans Savor Are Costing Uncle Sam Big:
Almost all lawmakers support the mortgage interest deduction, which has been called "America's favorite tax shelter," and homebuilders and real estate agents say it's critical for promoting homeownership. But widespread concern about the federal indebtedness has focused attention on tax breaks that cost so much that some critics question whether America can afford them.
The mortgage interest deduction is the third-most- expensive tax break, estimated to cost only slightly less than the tax treatment of employer-sponsored health care ($110 billion) and 401(k) retirement plans ($106 billion), according to figures from the Congressional Joint Committee on Taxation.
Added together, the more than 200 tax breaks will cost the federal government about $1.1 trillion this year – about $200 billion less than the budget deficit. They are also known as tax expenditures, because they work just like other government expenditures. …
"This country needs to come to grips with the reality that we have limited resources," said Edward D. Kleinbard, a former chief of staff to the Joint Committee on Taxation, which computes the cost of tax legislation for Congress. "We have to make hard choices, and tax expenditures are getting close to a free pass compared to explicit spending," Kleinbard said.
Yet tax expenditures are rarely mentioned when Congress discusses the path to fiscal discipline. Lawmakers from both parties regularly refer to tax expenditures as "tax relief," meaning attempts to repeal or change them can be painted as a tax increase.
Dallas Morning News, Tax Breaks Have Share of Critics, but Nothing Changes in Washington:
Congressional auditors and some senior lawmakers say many tax breaks aren't doing their job and should be overhauled. Yet most years, when Congress has a chance to review the provisions, it extends them instead. …
Many of the most expensive tax breaks are permanent. But several dozen, including the research credit, must be reauthorized for a year or several years at a time.
Some tax experts think Congress should make most tax breaks temporary, so lawmakers would at least be forced to grapple with their cost. But others are skeptical, saying Congress has not shown itself willing to challenge the lobbying forces that demand annual renewal.
"Once it's in the [tax] code, it just sails on," said Edward D. Kleinbard, former chief of staff to the Congressional Joint Committee on Taxation. "Every one has a champion within Congress. The members find it desirable not to criticize other members' pet [tax] expenditures, so their pet expenditures are not criticized by the other fellow."




