Heim, Bradley T.
Evaluating the cost-effectiveness of individual income tax incentives / Bradley T. Heim
Bibliografía.
This paper examines the cost-effectiveness of individual income tax incentives in the United States. Basic theory is presented to show how income tax incentives can be evaluated in a cost-effectiveness framework using existing estimates of responsiveness. The paper then uses the extant literature to calculate effectiveness-cost ratios for major incentives. About half are found, at least tentatively, to not be cost-effective, including incentives for housing, education, employer-sponsored health insurance, and retirement savings in recent years. The paper finally examines the extent to which the Tax Cuts and Jobs Act likely altered the cost-effectiveness of individual income tax incentives.
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
DEDUCCIONES
CREDITO
INCENTIVOS FISCALES
National Tax Journal 0028-0283 v.78, n.1, march 2025, p. 115-167
Evaluating the cost-effectiveness of individual income tax incentives / Bradley T. Heim
Bibliografía.
This paper examines the cost-effectiveness of individual income tax incentives in the United States. Basic theory is presented to show how income tax incentives can be evaluated in a cost-effectiveness framework using existing estimates of responsiveness. The paper then uses the extant literature to calculate effectiveness-cost ratios for major incentives. About half are found, at least tentatively, to not be cost-effective, including incentives for housing, education, employer-sponsored health insurance, and retirement savings in recent years. The paper finally examines the extent to which the Tax Cuts and Jobs Act likely altered the cost-effectiveness of individual income tax incentives.
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
DEDUCCIONES
CREDITO
INCENTIVOS FISCALES
National Tax Journal 0028-0283 v.78, n.1, march 2025, p. 115-167