A 'tax expenditure' is:

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Tax expenditures refer to deductions, exclusions, exemptions, credits, and preferential tax rates that are offered by the government to incentivize or support certain social, economic, or political objectives. These tax breaks can be used to promote activities like homeownership, charitable giving, business investment, education, healthcare, and energy conservation. By reducing the amount of taxable income, tax expenditures help individuals and corporations to lower their tax bills and retain more of their money. However, they also reduce the revenue collected by the government and may create disparities in the tax treatment of different taxpayers. Therefore, tax expenditures are a controversial and contested issue in tax policy.

A 'Tax Expenditure' Is