Evaluating the cost-effectiveness of individual income tax incentives Bradley T. Heim
By: Heim, Bradley T
.
Material type: 
ArticleSubject(s): IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS | DEDUCCIONES | CREDITO | INCENTIVOS FISCALES
In:
National Tax Journal v.78, n.1, march 2025, p. 115-167Summary: 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.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2025/1-2 (Browse shelf) | Available | OP 233/2025/1-2 |
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.
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