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Occasional Paper 4
Center for the Study of American Business (CSAB), Washington University in St. Louis, St. Louis, MO 63130
Contrary to popular belief, tax expenditures or "loopholes" can in fact be useful. Given that the prompt elimination of large government deficit financing and pervasive government regulation is unlikely, tax expenditures may serve as a more sensible, second-best alternative. Indeed, tax expenditures (or incentives) may serve a variety of public purposes, ranging from promoting business investment to encouraging private, voluntary organizations. Typical tax expenditures tend to benefit the middle and lower income groups and should be considered an important alternative to achieve important government objectives.
Tax Policy, Tax Expenditure, Loopholes, Incentives, Policy Alternatives
Economics | Public Policy
Weidenbaum, Murray L., "The Case for Tax Loopholes", Occasional Paper 4, 1977, doi:10.7936/K7G15Z1V.
Murray Weidenbaum Publications, https://openscholarship.wustl.edu/mlw_papers/71.