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United States yearbook - 1982 (1)

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252 Federal Government Finances and Employment<br />

No. 425. Revenue Loss Estimates fo r S elected “Tax E xpenditures" by Function:<br />

1981 a n d <strong>1982</strong><br />

[In millions of dollars. For years ending Sept. 30. Represents tax expenditures of $100 million or more in <strong>1982</strong>]<br />

DESCRIPTION 1981 <strong>1982</strong><br />

DESCRIPTION 1981 <strong>1982</strong><br />

National defense:<br />

Exclusion of benefits and allowances to<br />

Armed Forces personnel..........................<br />

International affairs:<br />

Exclusion of income earned abroad by<br />

<strong>United</strong> <strong>States</strong> citizens..... .........................<br />

Deferral of income of domestic international<br />

sales corporations (DISC)..-...... ..............<br />

General science) apace, and technology:<br />

Expensing of research and development<br />

expenditures.<br />

Credit for increasing research activities.<br />

Energy:<br />

Expensing of exploration and development<br />

Oil and gas...................................<br />

Excess of percentage over coat depletion:<br />

Oil and gas.....__ ________ _____<br />

Other fuels...................................<br />

Capital gains treatment of royalties on coal...<br />

Residential energy credits:<br />

Supply Incentives.........................<br />

Conservation incentives................<br />

ogy credit:<br />

Supply incentives...........<br />

Conservation incentives...<br />

Natural resources and environment*.<br />

Excess of percentage over cost depletion,<br />

nonfuel minerals..........................<br />

government pollution control bonds..<br />

Income..<br />

Agriculture:<br />

Expensing of certain capital outlays..........<br />

Capital gains treatment of certain income..<br />

Commerce and housing credit:<br />

Dividend and Interest exclusion................<br />

industrial development bonds....<br />

Excess bad debt reserves of<br />

institutions..................................<br />

Exclusion of Interest on life ii<br />

savings..,<br />

Deductibility of Interest on consumer credit..<br />

Deductibility of mortgage interest or<br />

occupied homes.........................<br />

Deductibility of property tax on owr<br />

pied homes................................<br />

ing............<br />

Expensing oi<br />

and taxes...<br />

iron ore and coal)... ...........................<br />

Deferral of capital gains on home sales...<br />

1,735 1,885<br />

610 985<br />

1.595 1,465<br />

1,550 380<br />

15 405<br />

. 3,525 4,065<br />

. 1,865 1,965<br />

380 380<br />

100 105<br />

150 205<br />

425 415<br />

235<br />

285<br />

405<br />

715 835<br />

600<br />

525 545<br />

425 460<br />

2,185<br />

1<br />

1,650<br />

1<br />

325 250<br />

»<br />

... 4,060 4,535<br />

8,875 9.285<br />

r<br />

persons age 55 and over.....................<br />

Carryover basis of capital gains at death... .... 2.07C<br />

1-<br />

1,<br />

and reforestation expenditures...<br />

Safe harbor feasfng rules............ .<br />

Exclusion of interest on certai<br />

certificates...............................<br />

h<br />

1<br />

r-<br />

t<br />

r,<br />

23,030<br />

10,065<br />

S20<br />

745<br />

16,315<br />

1,070<br />

415<br />

2,190<br />

20,035<br />

.... K 3,560<br />

.... (X) 515<br />

Reinvestment of dividends in public utility<br />

stock........................................................<br />

Community and regional development:<br />

Investment credit for rehabilitation of structures........................................................<br />

Education, training, employment, and social<br />

services:<br />

Exclusion of Interest on State and local<br />

student loan bonds....................................<br />

Parental personal exemption for students<br />

age 19 or over..........................................<br />

Exclusion of employee meals and lodging<br />

(other than military)...................................<br />

Investment credit for ESOP’s........................<br />

Deductibility of charitable contributions<br />

(education)...............................................<br />

Deductibility of charitable contributions,<br />

other than education and health................<br />

Credit for child and dependent care<br />

Targeted ]obs credit...<br />

Health:<br />

Exclusion of employer contributions for<br />

medical insurance premiums and medical<br />

care..........................................................<br />

Deductibility of medical expenses.................<br />

Exclusion of interest on State and local<br />

hospital bonds..........................................<br />

Deductibility of charitable contributions<br />

(health).....................................................<br />

Income security:<br />

Exclusion of Social Security benefits:<br />

Dislbllity insurance benefits-..................... .<br />

OASI benefits (or retired workers...............<br />

Benefits for dependents and survivors...... .<br />

Exclusion of railroad retirement system<br />

benefits.....................................................<br />

Exclusion oi workmen's compensation<br />

beneiits....................................................<br />

Exclusion of untaxed unemployment<br />

insurance benefits.....................................<br />

Exclusion of disability pay.............................<br />

Net exclusion of pension contributions and<br />

earnings:...............................................<br />

Employer plans..........................................<br />

Plana for self-employed and others...........<br />

Exclusion of other employee benefits:<br />

Premiums on group term life insurance.....<br />

Premiums on accident and disability<br />

insurance<br />

Additional exemption for elderly...................<br />

Tax credit for the elderly...............................<br />

Deductibility of casualty losses......................<br />

Earned income credit K.................................<br />

Exclusion of interest on State and local<br />

housing bonds for rental housing..............<br />

Deduction for motor carrier operating rights....<br />

Veterans benefits and services:<br />

Exclusion of veterans disability compensation<br />

..........................................................<br />

Exclusion of Gl bill benefits..........................<br />

General purpose fiscal assistance:<br />

Exclusion of interest on general purpose<br />

State and local debt.................................<br />

Deductibility of nonbusiness State and local<br />

taxes other than on owner-occupied<br />

homes......................................................<br />

Tax credit for corporations receiving income<br />

from doing business in <strong>United</strong> <strong>States</strong> pos-<br />

(Z) 130<br />

220 255<br />

60 100<br />

1,045 995<br />

620<br />

975<br />

655<br />

1,005<br />

925 895<br />

8,485 8,345<br />

935<br />

305<br />

14,050<br />

3.615<br />

560<br />

1,390<br />

0,845<br />

1,735<br />

365<br />

2,730<br />

1,985<br />

170<br />

23,390<br />

2,170<br />

1,840<br />

100<br />

2,250<br />

130<br />

775<br />

610<br />

435<br />

(z)<br />

1,255<br />

200<br />

5,855<br />

19,085<br />

1,120<br />

1,120<br />

235<br />

15,330<br />

3,925<br />

680<br />

1,360<br />

915<br />

9,980<br />

1,915<br />

380<br />

3,100<br />

2,060<br />

155<br />

25,785<br />

2,560<br />

1,900<br />

100<br />

2,355<br />

135<br />

600<br />

555<br />

485<br />

140<br />

1,360<br />

175<br />

6,685<br />

20.395<br />

X Not applicable. Z $5 million or less. ‘ Indicates the effect of the earned Income tax credit on receipts. The effect on<br />

outlays fs: 1981, $1,320 million; 1962, $1,25$ million.<br />

Source: US. Office of Management and Budget, S p e c ia l A n a ly s e s , B u d g e t o f th e U n ite d S ta te s G o v e rnme n t, annual.<br />

1,200

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