Leonard E. Burman, Daniel Patrick Moynihan Professor of Public Affairs, at the Maxwell School of Syracuse University,presented testimony on “Tax Reform and the Tax Treatment of Capital Gains” before the House Committee on Ways and Means and the Senate Committee on Finance, September 20,...

One possible explanation for the difficulty in controlling the budget is that a major component of spending—tax expenditures—receives privileged status. It is treated as tax cuts rather than as spending. This paper explores the implications of that classification and illustrates how it can...