Tax expenditures are

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Tax expenditures refer to revenue losses that occur as a result of special provisions in the tax code, such as exemptions, exclusions, and deductions. These provisions are designed to promote certain policy goals or benefit specific groups, and they reduce the amount of tax revenue that the government is able to collect. Examples of tax expenditures include the mortgage interest deduction, the exclusion of employer-provided health insurance from taxable income, and the tax-free treatment of contributions to retirement accounts.

Tax Expenditures Are