All tax expenditures amount to revenues that the government loses because certain items are exempted from normal taxation or are taxed at lower rates.

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Tax expenditures refer to revenue losses resulting from tax exemptions, deductions, credits, exclusions, preferential tax rates, etc. These provisions reduce the amount of tax revenue that the government can collect, so they are considered expenditures in the sense that they represent a loss of potential revenue.

All Tax Expenditures Amount to Revenues That the Government Loses