Research Report Trends in Tax Expenditures: An Update
Sarah Calame, Eric Toder
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Over the period between 2013 and 2029, the sum of the estimated budgetary costs of all tax expenditures as a percentage of gross domestic product will range from approximately 8.5 percent in fiscal year 2017 to 6 percent in fiscal years 2024 and 2025. The Tax Cuts and Jobs Act of 2017 (TCJA) reduced the sum of tax expenditure costs between 2019 and 2025, but after 2025, when most provisions of the TCJA will expire, total costs will rebound to 7.6 percent of gross domestic product by 2029. The TCJA also altered the composition of tax expenditures.

Research Areas Taxes and budgets
Tags Individual taxes Taxes and business Federal budget and economy Federal tax issues and reform proposals
Policy Centers Urban-Brookings Tax Policy Center