Contents -- Foreword -- Preface -- The Editors and Authors -- Acronyms and Abbreviations -- 1 Tax Expenditures: General Concept, Measurement, and Overview of Country Practices -- Tax Expenditures, Contingent Liabilities, and Direct Spending -- General Concept -- Tax Expenditure Reports among OECD Countries -- Conclusions -- 2 A Framework for Evaluating Tax Measures and Some Methodological Issues -- Relevance -- Effectiveness -- Efficiency -- Methodological Issues -- Summary -- Appendix A: Estimating the Change in Excess Burden per Dollar of Tax Expenditure -- 3 Tax Expenditures in Australia -- What Is a Tax Expenditure? -- Purpose of the Tax Expenditures Statement -- Measuring Tax Expenditures -- Defining Tax Expenditure Benchmarks -- Classification of Tax Expenditures -- Conclusion -- Appendix A: Cash versus Accrual Estimates -- Appendix B: Details of the Australian Tax Expenditure Benchmarks -- 4 From Tax Expenditure Reporting to Tax Policy Analysis: Some Experience from Belgium -- Tax Expenditure Reporting in Belgium -- The Benchmark Tax System -- Revenue Cost from Tax Expenditures -- From the Revenue Cost to the Economic Cost of Tax Expenditures -- 5 Federal Tax Expenditures in Canada -- Defining Tax Expenditures -- Calculation and Interpretation of the Tax Expenditure Estimates -- Estimation Methods Used in Canada -- Conclusion -- Appendix A: List of Personal Income Tax Expenditures Calculated Directly from the T1 Model -- Appendix B: List of Corporate Income Tax Expenditures Calculated Directly from the T2 Model -- 6 Tax Expenditures in the Netherlands -- History of Tax Expenditures in the Netherlands -- Tax Policy as a Part of General Government Policy -- Definition of Tax Expenditure -- Definition of Benchmark Tax Structure -- Use of Tax Expenditures -- Annual Tax Expenditure Report of the Budget Memorandum.

Budgeting the Costs of Tax Expenditures -- Criteria for Introducing New Tax Expenditures -- Calculation of the Budgetary Consequences of Tax Expenditures -- Appendix A: Estimates of Tax Expenditures: Taxes on Income, Profits, and Property, 2001-07 -- Appendix B: Estimates of Tax Expenditures: Indirect Taxes, 2001-03 -- 7 Tax Expenditures in the United States: Experience and Practice -- U.S. Practice -- Definition of Tax Expenditures -- Measurement of Tax Expenditures -- Usefulness of Tax Expenditure Budgeting -- Conclusions -- 8 Establishing a Tax Expenditure Administrative System That Achieves a Sound Fiscal System in China -- Importance of Establishing a Scientific, Uniform, and Efficient Tax Expenditure System -- China's Current Tax Expenditures and Major Issues -- Policy Options for Improving China's Tax Expenditures -- Reinforce Industrial Tax Expenditure Policies, but Impose Restrictions on Introducing Regional Tax Expenditure Policies -- Good Practices: Cross-Country Comparison -- Establishing a Tax Expenditure Administrative System in China -- 9 China's Current Tax Expenditure System: Issues and Policy Options -- Definition of Tax Expenditure -- China's Current Tax Expenditure System -- Problems with the Current Chinese Tax Expenditure System -- Policy Options: Building a Well-Functioning Tax Expenditure System -- 10 Poland: Reforming Tax Expenditure Programs -- Tax Expenditure Programs in Poland -- Economic Effectiveness, Efficiency, and Equity of Personal Income Tax Expenditure Programs -- Cost Estimates of Personal Income Tax Expenditure Programs -- Strengthening the Administration of Tax Expenditure Programs -- Appendix A: Available Tax Relief per Tax Bracket -- Appendix B: Analysis of 18 State Tax Expenditure Programs and Direct Expenditures (in Zlotys thousands) -- Appendix C: Estimates of Revenue Loss through Tax Expenditures, 1998.

11 Managing Tax Expenditures: Policy Options -- Proposed Policy Options -- Conclusions -- Index -- Boxes -- 3.1. How the SHS Definition of Income Works: An Example -- 4.1. Methods to Prevent Double Taxation of Distributed Profits -- 4.2. Computation of the Implicit Tax Rate: Methodology -- 5.1. Benchmark for the Income Tax System -- 5.2. Benchmark for the Goods and Services Tax -- 6.1. Tax Expenditures in the Netherlands: A Timeline -- 7.1. Brief History of U.S. Tax Expenditure Budgeting -- 10.1. Tax Expenditure Reporting in OECD Countries -- Tables -- 1.1. Total Social Expenditures among 10 OECD Countries, 1997 -- 1.2. Why Countries Produce Tax Expenditure Reports: A Comparison of 10 OECD Countries -- 1.3. What Countries Include in Tax Expenditures Reports: A Comparison of 10 OECD Countries -- 3.1. Total Measured Tax Expenditures -- 3.2. Aggregate Tax Expenditures by Function (in Australia dollars millions) -- 3.3. Aggregate Tax Expenditures and Direct Expenditures by Function in 2001/02 (in Australia dollars millions) -- 3.4. Aggregate Tax Expenditures by Taxpayer Affected (in Australia dollars millions) -- 4.1. Tax Expenditures, 2000 -- 4.2. Revenue Cost of Personal Income Tax Provisions Considered Part of the Benchmark Tax System (revenue cost, in millions of Euros -- 5.1. Projection Process for Televisions, Video Recorders, and Accessories -- 6.1. Estimates of Tax Expenditures in Taxes on Income, Profits, and Property, 2001-07 -- 6.2. Estimates of Tax Expenditures in Indirect Taxes, 2001-03 -- 6.3. Evaluation of Budget Systems -- 6.4. Effect of Accelerated Depreciation in Different Years for an Investment with an Economic Life Span of Five Years -- 6.5. Calculation of the Budgetary Effect of the Introduction of Accelerated Depreciation Based on Underlying Micro Effects.

7.1. Comparison of Tax Expenditure Budgets Prepared by the U.S. Treasury and the U.S. Congress Joint Committee on Taxation, 2002 -- 7.2. Comparison of the Normal and Reference Baselines -- 10.1. Personal Income Taxpayers Applying Deductions in 1997 -- 10.2. Housing Tax Savings, 1993-98 -- 10.3. Effective Rates of Personal Income Tax, 1997 -- Figures -- 2.1. Excess Burden of Taxation: Two Good Cases -- 4.1. Tax Expenditures and Tax Revenue -- 4.2. Personal Income Tax: Revenue Cost of Tax Expenditures and of Provisions Considered Part of the Benchmark Tax System -- 4.3. Personal Income Tax: Revenue Forgone from Tax Expenditures -- 4.4. Corporate Income Tax Expenditures: Deductions from the Tax Base -- 4.5. Corporate Income Tax Expenditures: Notional Withholding Taxes and Tax Credits -- 4.6. Corporate Income Tax from Nominal to Implicit Tax Rates -- 4.7. Tax Expenditures and Regulation: The Case of Savings Accounts -- 6.1. Tax Expenditure in the Netherlands -- 6.2. Financial Policy Instruments -- 10.1. Personal Income Tax Rates and Effective Tax Rates, 1997 and 1998.