“As negotiations for the Build Back Better Act continue, policymakers should consider options that would not only raise revenue but improve the overall structure of the federal tax code. One approach is to address tax expenditures, tax breaks in the federal tax code.
A recent Congressional Budget Office (CBO) analysis estimated the budgetary and distributional effects of the major tax expenditures in 2019 found most tax expenditures to be costly and regressive. The tax expenditures CBO analyzed cost the federal government nearly $1.2 trillion, or 5.8 percent of Gross Domestic Product (GDP), in 2019.”
Read the Committee for a Responsible Federal Budget’s blog for more details here.