A new report from the Congressional Budget Office found that the top 10 tax expenditures are distributed unevenly across the income scale, with much of the benefit going to the top-earning 1 percent of the population.

The report, which was released Wednesday, examined exclusions from taxable income, such as tax breaks for employer-sponsored health insurance, net pension contributions and earnings, capital gains on assets transferred at death, and a portion of Social Security and Railroad Retirement benefits. Other top tax expenditures included itemized deductions such as certain taxes paid to state and local governments, mortgage interest payments, and charitable contributions. The other three tax expenditures were preferential tax rates on capital gains and dividends; as well as two refundable tax credits: the Earned Income Tax Credit and the Child Tax Credit.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access