Tax Code Expenditures
- Tax code doles out $4 billion in annual subsidies to the oil and gas industry.
- Special tax provisions that allow companies to choose the most favorable methods for valuing their inventory and cost of goods sold cost $9.2 billion.
- Allowing deferrals on overseas profits such as companies are permitted to deduct expenses that are properly allocable and apportioned to foreign-source income even if tax on such income is deferred until later years which costs $3 billion.
- Stop cross crediting which enables companies to reduce U.S. taxes on foreign income by selectively repatriating earnings while deferring income in low-tax countries, including tax havens and costs $2.6 billion.
- Eliminate transfer pricing where multinational corporations use transactions with related entities to shift income, for tax purposes, out of the United States into low-tax countries and costs $1.2 billion.
- Eliminate special benefit to multinational corporations in extractive industries such as oil and gas, and mining that costs $532 million.
- Limit Itemized deductions for higher tax brackets which would save $6 billion.
- Eliminate the carried-interest loophole given to private equity and hedge fund managers that costs $2.3 billion.
- Remove the exception from passive-loss rules for $25,000 in rental loss which costs $13.1 billion.
- Eliminate the tax subsidy for private-purpose bonds that costs $4.4 billion.
- Eliminate write-offs for corporate meals and entertainment costing $11 billion.
- Eliminate tax subsidies for agribusinesses that cost $770 million.
- Eliminate the special Blue Cross Blue Shield deduction that costs $680 million.
- Eliminate timber tax subsidies costing $340 million.
- Eliminate the special tax break for horse breeders costing $200 billion.
- Deny the deduction for vacation homes and yachts costing $1 billion.
Just these changes would result in $60.333 billion dollars of additional taxes in 2013 without raising a single rate in any of the tax brackets.
