Tax Expenditures in OECD Countries
The use of tax expenditures by governments is pervasive and growing. At a time when many government budgets are threatened by population ageing and adverse cyclical developments, there is a pressing need to avoid inefficient government programmes, some of which may utilise tax expenditures.
This book sheds light on the use of tax expenditures, mainly through a study of ten OECD countries: Canada, France, Germany, Japan, Korea, Netherlands, Spain, Sweden, the United Kingdom and the United States. This book will help government officials and the public better understand some of the technical and policy issues behind the use of tax expenditures. It highlights key trends and successful practices, and addresses a broad range of government finance issues, including tax policy making, tax and budget efficiency, fiscal responsibility and rule making.
Also available in: French
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Policy background and practices
This chapter explains why tax expenditures are adopted and when they might work well. It then discusses the different theoretical allegations of negative effects of tax expenditures. Next, it explains the multiplication and growth of tax expenditures. It continues by discussing the special case of “make work pay” tax expenditures. Finally, it discusses policy making processes involved in implementing tax expenditures, such as reporting, review and oversight, and legislative process and enactment.
Also available in: French
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Click to download PDF - 343.11KBPDF
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Click to Read online and shareREAD