The Tax Foundation (TF) in the US considers that a number of corporate and individual tax breaks should be recognized as fulfilling a beneficial purpose, even though the US government is currently considering their abolition. Many of the tax breaks are available for individuals rather than corporations.
The TF looked at the tax deduction for mortgage interest for individuals which costs the US government USD70bn, and came to the conclusion that this issue would be better dealt with by a more comprehensive deduction for interest paid rather than a specific deduction in relation to owner-occupied housing.
On the subject of corporate tax deductions, the TF considers that although these are much smaller in terms of government expenditure than the deductions available to individuals nevertheless some are quite substantial. The deferral of income from controlled foreign companies (CFCs) for example costs the US government USD 76 billion. This tax break would not be required if the US moved towards a more territorial corporate tax system concession would be unnecessary if the United States moved to a territorial system of corporate taxation and therefore generally exempted foreign income from tax.
