SOURCE: DATA FROM THE BUDGET OF THE U.S. GOVERNMENT, 1970 AND THE DEPARTMENT OF THE TREASURY ESTIMATES. Chart 5 Budget outlays plus tax expenditures (in billions of dollars Total budget outlays plus tax expenditures Tax expenditures as percent of budget outlays 4.1 2.3 2.8 4.0 5.2 8.1 7.0 8.0 98% 204% 186% SOURCE: DATA FROM THE BUDGET OF THE U.S. GOVERNMENT, 1970 AND Chart 6 Deductibility of child and dependent care expenses 25 70 Standard deduction 3,200 1/ Total 15,550 Budget outlays plus tax expenditures (in billions of dollars) 1968 1969 1970 Budget outlays: Expenditures Net lending 0.1 59.1 66.9 74.5 36% 37% Total Tax expenditures Total budget outlays plus tax expenditures Tax expenditures as percent of budget outlays 36% 1/ In the absence of the 10 percent standard deduction and most itemized nonbusiness deductions, the minimum standard deduction as presently structured would be taken by all taxpayers and its revenue cost would be relatively large. Under present treatment, the minimum standard deduction, in keeping with its objectives, is claimed almost entirely by low-income taxpayers and its revenue cost is $300 million. The revenue estimate assumes the minimum standard deduction is designed to assist only low-income taxpayers. The minimum standard deduction is regarded in this analysis as related to the system of personal exemptions and thus a part of the structure of an income tax system based on ability to pay, rather than as a tax expenditure. *Less than $50 million. |