response to peersEach 150 wordsBelow are answers done by my classmate for discussion questions. I need you to respond to each answer, with around 150 words each. In the response say if you agree or disagree with the discussion provided, and give reasons for that. Post 2: Respond to Peer
Emily Draper
RE: Week 2 Discussion Topic 1
I have chose to find a legislative source and I found the U.S. Department of Treasury website. According to the Treasury website, Tax expenditures are defined by law as revenue losses attributable to provisions of the Federal tax laws which allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral of tax liability. These exceptions may be viewed as alternatives to other policy instruments, such as spending or regulatory programs. I decided to look up the tax expenditure associated with charitable
contributions. According to Estimates Of Federal Tax Expenditures For Fiscal Years 2018-2022, page 11, the ability of donors to such nonprofit organizations to claim a charitable contribution deduction is a tax expenditure. This means that the charitable contributions will not be under deductions, they will be under tax expenditures for nonprofit organizations. Also, in the article, there are charts showing what percentage will be a tax expenditure and some of it can be based on how much income you make throughout the fiscal year. I believe making these laws on tax expenditures will overall help the tax policy analysts to be more efficient and consistent with the tax returns and everything is classified under.
U.S. Department of the Treasury. (n.d.). Retrieved from https://home.treasury.gov/policy-issues/tax-policy/tax-expenditures
(n.d.). Retrieved from https://www.jct.gov/publications.html?func=startdown&id=5148