Orrin Hatch: “I rise today to correct the record on the matter of tax expenditures. Many myths have been created and reinforced by my…”

“I rise today to correct the record on the matter of tax expenditures. Many myths have been created and reinforced by my friends on the other side of the aisle on the subject of tax expenditures. In my 4 years as ranking Republican on the Senate Finance Committee, I came to the floor several times to set the record straight. I am afraid I need to do it again today, this time as chairman. Today I will focus on the tax expenditures in the individual income tax. According to 2014 Congressional Budget Office data, the individual income tax accounts for 47.1 percent of Federal revenue. By contrast, the corporate income tax accounts for 11.9 percent of Federal revenue. It boils down to three basic points. All points that can be derived from an objective, nonpartisan review of the data from Congress's nonpartisan official tax scorekeeper. I am referring to the Joint Committee on Taxation, of which I am the vicechair. First point: Tax expenditures are not spending, with one exception. That exception is for refundable tax credits. They count as outlays under the Congressional Budget Act. Ironically, refundable tax credits are the policies my friends on the other side are most in favor of expanding. Just look at the slew of Democratic amendments filed to that effect. My Democratic friends erroneously describe most tax expenditures as spending. Yet they seek to expand the minority of tax expenditures which score as spending. Go figure.…”