Tax expenditure effectiveness: tax expenditures lab flagship report 2025
von Haldenwang, Christian / Agustin Redonda / Flurim Aliu / Sofia Berg (2025)
Books
Tax expenditures (TEs) – i.e. deviations from a benchmark tax system that lower the tax burden of specific groups, economic sectors or activities – can be powerful tools to promote public policies. However, their effectiveness is often in doubt. The present report discusses the determinants and explores the empirical evidence of TE effectiveness.