TAX EXPENDITURES IN THE FEDERAL EXCISE TAX-SYSTEM

Federal excise taxes contain tax expenditure provisions analogous to t he tax expenditures imbedded in individual and corporate income taxati on. These provisions generate revenue losses from exemptions or reduce d tax rates for particular groups of producers or consumers of commodi ties and services otherwise subject to excise taxation. The 244 tax ex penditure provisions identified here are deviations from the ''normal structure'' of nine different types of excise taxes. Theoretical issue s involved in estimating resulting revenue losses are discussed, but e stimates of revenue losses and studies of the efficiency of these tax expenditures in accomplishing fiscal objectives remain subjects for fu ture research.