Considering Tax Expenditures in State Budget Deliberations

Abstract:     
This is the manuscript of a talk given at a public forum on tax expenditures in Topeka, Kansas. It explains how tax expenditures erode tax bases and diminish the state's ability to raise revenue, and it suggests that states should treat tax expenditures like direct expenditures in budget deliberations. Finally, the talk demonstrates how tax expenditures can be unfair. Although the comments are specific to the state of Kansas, the principles apply to all governments.

Number of Pages in PDF File: 16

Keywords: tax expenditure, budget gap, tax exemptions

working papers series