Tax expenditures (or tax breaks) are an important limitation on federal revenues.

Question

Quizplus · Accepted Answer

Tax expenditures or tax breaks refer to various provisions in the tax code that allow taxpayers to reduce their tax liability, such as deductions, credits, exemptions, and exclusions. These provisions reduce the amount of revenue that the federal government collects, hence limiting federal revenues. Therefore, tax expenditures are an important limitation on federal revenues.

Tax Expenditures (Or Tax Breaks) Are an Important Limitation on Federal